Is there a "gap" between the current value of your vehicle and the amount you still owe on your loan?
That's why NMFCU offers GAP (Guaranteed Asset Protection) Insurance. If your vehicle is totaled or stolen, GAP insurance pays the difference between the value of the vehicle, which is determined by the insurance company, and the unpaid balance of the loan.
What is the "GAP" on your vehicle? You may be surprised at the answer!
| HOW GAP WORKS - A TYPICAL EXAMPLE | |
|---|---|
| Vehicle's original purchase price: | $25,000.00 |
| Suppose after one year you experience a total loss on your vehicle... | |
| Loan balance after one year: | $20,000.00 |
| Insurance settlement covering vehicle's current value: | $16,000.00 |
| Your lost investment without GAP... | |
| Your remaining unpaid loan balance; the "GAP" (including your deductible, up to $1,000)** : |
$4,000.00 |
| GAP pays the following toward the financing or leasing of a replacement vehicle... | |
| GAP pays the difference: | $4,000.00 |
| GAP Advantage also pays: | $1,000.00 |
| Total GAP Benefit: | $5,000.00 |
| ** Deductible reimbursement is available in most, but not all states. Please consult your financing representative for the availability of this benefit.The GAP Advantage gives you further peace of mind. If the vehicle you are now purchasing ever becomes "totaled", or is stolen and not recovered, GAP Advantage pays an additional $1,000.00 toward the purchase or lease of a replacement vehicle. Not only will you receive the difference between the value of your vehicle and its unpaid loan or lease balance, you also get a head start on financing or leasing a new or used replacement vehicle when you refinance or lease through the same financial institution. | |
