First Choice Community Credit Union
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GAP Waiver  

A toy man figurine standing beside two toy cars that appear to have bumped into each other Accidents do happen. That’s why you carry auto insurance. But sometimes that insurance may not be enough to fully cover your loss. Typically, your insurance policy will only cover the actual cash value or market value of your vehicle if it is deemed a total loss due to accident or theft. This could be less than the amount you still owe on a financed vehicle, leaving you liable for the difference out of your own pocket. This may especially apply to new vehicles that depreciate during the first few years at a faster rate than your scheduled payments pay down your loan balance.

Guaranteed Auto Protection or GAP covers the difference between what you get from your insurance company and what you owe on your loan, less delinquent payments and late charges. GAP will also cover all or part of your deductible and pay an additional amount toward the purchase of a new vehicle acquired within three months of the date that the GAP claim is paid.

For more information on GAP, please contact loan services.