GAP Insurance

Guaranteed Auto Protection (GAP) is an insurance program offered by Dakota Star FCU for your new and used vehicle loan.  This financial protection should cover the difference between the balance owed on a car and its actual value in the event it is damaged beyond repair or stolen and never recovered.  GAP is a supplemental insurance coverage.  It does not replace your standard comprehensive, collision, or liability coverage.  It only enhances them.

Did You Know...

• The market value of your new vehicle starts to depreciate the moment you take possession.
• If your vehicle is totaled or stolen, your insurance usually does not cover the entire amount that you owe on a lease or a loan.
• If a total loss occurs, you may have to pay the difference, the gap, between what you owe and the actual cash value of your vehicle, from your own pocket.

For Example:  You purchase a vehicle. The loan balance after one year is $25,000.00.  The market value is $21,000.00 and your insurance deductible is $1,000.00.  You total the vehicle and your insurance company pays $20,000.00.  That leaves a gap of $5,000.00 that you would be left to pay for, on a vehicle that you no longer have! 

Loan payoff:   $25,000.00

Insurance settlement:  $20,000.00  ( Market value:  $21,000.00 -  Deductible: $1000.00)

Out of pocket expense:  $5,000.00

Or

GAP Payment to Lender:  $5,000.00

Out of pocket expense:  $ 0.00

Credit Life Insurance

In the event of your death, credit life insurance pays the balance of your loan - either the remaining balance or the policy maximum, whichever is less.

Credit Disability Insurance

If you were to become disabled by a covered sickness or accident which was to continue beyond the waiting period, credit disability insurance makes your payments for you, up to the policy maximum.

Notices, Terms, and Conditions
 
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