Guaranteed Asset Protection (GAP)
Guaranteed Asset Protection offers protection against financial liability when the amount you owe exceeds the market value of your car.
Within the first two or three years of ownership, your new vehicle will depreciate faster than the loan balance, leading to a gap between what insurance will pay in the event of a total loss and the amount you still owe to your lender. Guaranteed Asset Protection coverage bridges this gap, protecting you from unnecessary out-of-pocket expenses. For example, if your loan balance is $15,000 but your insurance company will only pay $13,000 for a total loss, GAP will pay the $2,000 difference.
When you’re a member of Spectrum Credit Union, you get a 5% discount on Guaranteed Asset Protection through Federal Insurance Company, a Chubb company. And with no cash down, easy enrollment, and the option to bundle the premium into your monthly loan payments, it’s an easy choice.