YOUR
AUTO INSURANCE DOES NOT COVER EVERYTHING
In the event your
vehicle is deemed a total loss due to an accident or theft,
your auto insurance policy will usually cover only the actual
cash value or market value of your vehicle less a deductible.
This settlement could be significantly less than the amount
you owe to your lender or leasing company. The final result
is a financial GAP where you must make up the difference,
which could mean thousands of dollars out of your pocket.
PROTECTION
THROUGH GUARANTEED AUTO PROTECTION PLUS
Guaranteed
Auto Protection Plus Protects individuals who finance a new
or used vehicle from the financial GAP
In the current
market, during the first few years that you own your vehicle,
your loan/lease balance can be higher than the actual value
of your vehicle, as a result of depreciation. As your vehicle's
value declines, your loan/lease balance may decline more slowly,
resulting in a financial gap. If your vehicle were stolen
or totaled in an accident, you would be liable to pay the
difference between your insurance settlement and your outstanding
loan/lease balance.
Guaranteed
Auto Protection Plus covers the difference between
the actual cash value of your vehicle and the loan/lease balance,
less delinquent payments, late charges, refundable service warranty
contracts and other insurance-related charges.
Guaranteed
Auto Protection Plus will even cover your auto
insurance deductible of $500 or $1,000. The actual amount
depends on your credit union's program limits. Ask your lender/loan
officer for details. |
