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 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. |
