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 is a loan/lease deficiency waiver and is not offered as insurance coverage. |
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.
| The purchase of Guaranteed Auto Protection Plus is voluntary and cannot be required as a condition of credit approval. |
Guaranteed Auto Protection 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 may even cover your auto
insurance deductible of up to$1,000. The actual amount
depends on your credit union's program limits. Ask your
lender/loan officer for details.
Guaranteed Auto Protection is administered by a third
party provider. Please see our privacy
policy for additional information on services offered
by third parties. |
