Guaranteed Asset Protection
Remember the days when you saved up before going to buy a vehicle? And when you put money down it made a dent in the amount you financed? That seems a long time ago – many don’t even remember those days! With the advent of 0 Down! 100% financing! came the necessity of a product that would cover the inevitable deficiency balances. Enter GAP.
GAP Protection is not standard coverage in typical auto insurance policies.
If a vehicle is stolen, accidentally damaged beyond repair, or otherwise declared an insured total loss, most standard auto policies only cover the actual cash value of the vehicle…less the deductible.
Unfortunately, your members remain financially liable for any shortfall between the net insurance settlement and what is owed on the loan. Your members could owe thousands of dollars on a vehicle they no longer have.
Our GAP Protection program covers the financial shortfall between the primary insurance carrier’s settlement and the net outstanding loan balance.
As the need for GAP became greater, refinements to the program also came along. Enabling credit unions and other financial institutions to be able to waive remaining balances left after insurance settlements has been a great boon both to credit unions and their members.
Having your collateral covered with this valuable product not only reduces credit union losses, it also brings about an additional source of fee income. The credit union can mark up the insurance carrier fee on the product by an amount that enables the credit union to add to their bottom line, incentivize their employees should they so choose, and still provide this valuable offering to their members for an amount that is generally much lower than what a dealer would charge them.
Since the credit union staff is trained to explain to the member what benefits they are adding to their loan, purchasing GAP from the credit union also allows the member to be aided in utilizing this valuable product in the event of a total loss or unrecovered theft. Another product that allows for greater peace of mind for your members!
And now, to increase the credit union’s ability to retain that loan at the credit union, Calger offers valuable enhancements to our GAP program. The GAP Plus benefit provides an additional $1,000 to be applied to the member’s replacement collateral loan when financed at the credit union. In addition, the primary insurance carrier’s deductible up to $1,000 is covered in the GAP settlement. Now that’s a deal!
