Guaranteed Auto Protection
WHAT IS GAP PROTECTION?
GUARANTEED AUTO PROTECTION PLUS
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 only cover 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. 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 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 balance can be higher than the actual value of your vehicle, as a result of depreciation. As your vehicle's value declines, your loan 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 balance.
Guaranteed Auto Protection Plus covers the difference between the actual cash value of your vehicle and the loan 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 $500.00.
HOW GUARANTEED AUTO PROTECTION PLUS WORKS (Example)
| Your Loan Balance after 1 Year .................................................................. | $15,000.00 |
| Your Vehicle's Actual Cash Value ............................................................... | $11,000.00 |
| Your Auto Insurance Deductible ................................................................. | $500.00 |
| Your Auto Insurance Settlement ................................................................. | $10,500.00 |
| Your Financial GAP ....................................................................................... | $4,500.00 |
| Guaranteed Auto Protection Plus Pays .................................................. | $4,500.00 |
Without Guaranteed Auto Protection Plus you would be required to pay this $4,500.00 in order to pay off your loan balance.
The purchase of Guaranteed Auto Protection Plus is voluntary and cannot be required as a condition of credit approval.
Guaranteed Auto Protection Plus is a loan deficiency waiver and is not offered as insurance coverage.
Savannah Postal Credit Union offers this protection at a very reasonable rate. Ask your loan officer when processing your next auto loan.
