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Guaranteed Asset Protection (GAP)
Guaranteed Asset Protection - or GAP - is not an insurance plan. Rather, it offers protection against financial loss if your vehicle is stolen or damaged beyond repair. GAP is available exclusively to individuals who have financed their vehicles(s) with a loan from EECU.
Here's how GAP works. Let's say you purchase a car for $18,000. After one year the value of the car drops to $10,000, but you still owe $15,000, leaving a "gap" of $5,000. If the car is totaled in an accident, the claim paid by your auto insurer would be based only on the car's market value ($10,000), and you would still be responsible for paying the remaining $5,000 gap to your auto lender.
GAP covers the difference between the market value of your vehicle and the loan/lease balance (less delinquent payments, late charges, refundable warranty contracts and other insurance-related charges). In this case, the $5,000 balance would be paid by GAP rather than by you.
What's the cost for this valuable level of protection? Just $150.00 for eligible new and used vehicles and motorcycles. GAP is also available on RVs, boats, and travel trailers. The fee is determined by the balance of the loan. A small price to pay for real peace of mind.
GAP…For Affordable Peace Of Mind.
For more information on GAP Coverage, contact the Member Service Center at (559) 437-7700 or 1-800-538-EECU. Or e-mail your questions and we'll reply as soon as possible: joanna@eecufresno.org.
This is general information only. Please refer to your actual waiver certificate for terms, conditions, coverage, limitations, and restrictions. GAP does not replace or eliminate the need for vehicle insurance coverage.
GAP is provided by EECU. GAP is not an obligation of EECU or guaranteed by EECU, even though an EECU employee may assist you with GAP and EECU loan proceeds may be used to pay for GAP. Any disputes regarding the GAP waiver must be resolved between the EECU member and EECU and/or the GAP waiver carrier.
