DuTrac’s optional Guaranteed Asset Protection* (GAP) coverage is a great way to protect yourself should your vehicle be accidentally damaged beyond repair or otherwise be declared a total loss. Should your vehicle be stolen, in many cases, auto insurance will only cover the actual cash value of the vehicle; however, you remain liable for the difference between the insurance settlement and the remaining balance of the loan.
This is where GAP coverage becomes important:
- GAP coverage pays the difference between any personal or car insurance amount received and the outstanding loan amount on the vehicle.
- GAP coverage pays the deductible up to $1,000 as long as a deficiency exists.
- GAP coverage pays $1,000 towards the replacement vehicle if your replacement vehicle is financed with DuTrac.
- GAP coverage is a great way to protect your credit rating and your budget as well as eliminate out-of-pocket expenses incurred after a loss.
*Vehicles used for a commercial purpose are not eligible for GAP protection. Purchase of GAP is optional and whether or not you purchase this product will not affect your application for credit or the terms of any credit agreement you have with the Credit Union. Adding the fee to the amount you borrow will increase the cost of GAP. You may choose GAP with a refund provision or without a refund provision. Prices of the refund and non refundable product are likely to differ. If you choose either product and cancel within the first 90 days, you will receive a full refund. If you choose a refundable product, you may cancel at any time during the loan and receive a refund of the unearned fee calculated by the actuarial method. We will give you additional information before you are required to pay the fee for this product. There are certain eligibility requirements, conditions, and exclusions that could prevent you from receiving benefits under GAP. You should carefully read the GAP contract (waiver) for a full explanation of the terms of the product.