GAP Insurance

Guaranteed Asset 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...there could be a big difference between what your insurance will pay and what you owe on your loan.

• The market value of your new vehicle starts to depreciate the moment you take possession
• Most cars depreciate thousands of dollars as soon as they are purchased. 
• If your vehicle is stolen, accidentally damaged beyond repair, or declared a total loss 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, or the gap, between what you owe and the actual cash value of your vehicle, from your own pocket for a vehicle that, for all practical purposes, no longer exists!

GAP could save you thousands of dollars!

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

GAP - low cost protection for high cost losses.  For just a few dollars a month, GAP can save you from making a loan payment on a vehicle that you no longer have.

It's easy to be covered.  You can sign up when you apply for your vehicle loan and the amount can be rolled into you monthly payment for your added convenience.

GAP if fully refundable if you cancel the coverage within the first 90 days.

Have you filled the GAP?
Protect yourself and your credit rating.  Contact one of Dakota Star Federal Credit Union's friendly loan officers today for more information on the benefits of GAP!

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.