GAP Coverage and Insurance Protection Assistance
To cover a loan with one signer, the cost is $2.10 per month, per $1,000 of coverage. Maximum total benefit is $50,000 per disability.For loans with two co-signers, the cost is $3.10 per month, per $1,000 of coverage. Maximum total benefit is $50,000 per disability. Please consult with your loan officer for additional terms and conditions.
For a loan with a single signer, the rate is $0.72 per month, per $1,000 of coverage. Maximum benefit is $50,000 per loan.For a loan with two co-signers, the rate is $1.09 per month, per $1,000 of coverage. Maximum benefit is $50,000 per loan. Please consult with your loan officer for additional terms and conditions.
Credit life and credit disability insurance is available for members up to age 70. To be eligible for credit disability, the borrower needs to be working at least 25 hours per week.
When your insurance company has informed you that your covered vehicle is a total loss, please contact our Loan Call Center at 677-2274 or (800) 677-6770. They will advise you of the next steps.
The Insurance Information Institute recommends purchasing GAP if you:
- Make less than a 20% down payment
- Finance for 60 months or longer
- Purchase a vehicle that depreciates faster than average
- Roll over negative equity from an existing vehicle loan into the new loan
GAP protection covers total vehicle loss due to collision, fire or unrecoverable theft.
GAP coverage is not required. It is optional and will not affect the decision on your loan application.
Mechanical Breakdown Coverage
This coverage is only for mechanical systems. It doesn’t cover routine maintenance, or non-mechanical repairs such as trim or paint. Important point - it also does not cover major repairs due to poor vehicle maintenance.
No. Auto insurance only covers damage due to accidents or theft.
Mechanical breakdown coverage is significantly less expensive than a manufacturer’s extended warranty. However, breakdown coverage does have a deductible and an extended warranty may not require one. Ask questions and read the small print to determine which option is better for your situation.
There are four levels of protection offered. The base level includes the engine, transmission, drive axle, brake system, electrical system and air conditioning. The second level adds the steering and fuel systems.
Ask your Loan Officer for a brochure showing the coverage levels.