Low-cost protection for high-cost losses
Most vehicles depreciate by thousands of dollars as soon as they are purchased, leaving you liable for the difference between what your insurance company will pay and the outstanding balance of your loan if your car is stolen, totaled in an accident, or otherwise declared a total loss. This difference could cost you thousands of dollars out of your own pocket especially if the loss occurs early in the loan term.
Guaranteed Asset Protection (GAP) covers the “gap”
TruMark Financial GAP insurance is available for $350, which can be rolled into your monthly payment and paid over time (interest will accrue on this amount).
GAP, provided by TruMark Financial, relieves you of this responsibility by covering the difference between what your insurance company pays and the outstanding balance on your loan. It saves you from making payments on a vehicle that does not exist anymore. GAP is available on motor vehicles, power sports equipment (e.g., jet skis, ATVs), recreational vehicles, and watercraft.
As an added benefit, if your vehicle is deemed a total loss and this coverage is in place, GAP will cancel up to $2,500 of the purchase price of your next vehicle if you finance through TruMark Financial within 120 days of receiving a settlement check from your insurance company.
How to enroll
Enrolling in the GAP program is easy. Just tell a member service representative you would like to add GAP to your next vehicle loan. The fee for the coverage is added to your monthly loan payment.
For more information on GAP insurance, please call 1-877-TRUMARK.
What GAP could save you:
|Amount borrowed to purchase a new car:||$20,000|
|Car value after you drive off the lot:||$17,000|
|Amount you’d be responsible for if the car is stolen or totaled:||$3,000|
|Amount you’d be responsible for with GAP:||$0|
GAP insurance, loan payment protection products, life insurance, and accidental death & dismemberment insurance are offered through CUNA Mutual Group. Products offered through CUNA Mutual Group are not NCUA/NCUSIF or otherwise federally insured. These products are not guarantees or obligations of the credit union. TruMark Financial Credit Union has contracted with CUNA Mutual Group to make insurance products and services available to credit union members. All representatives are registered through CUNA Mutual Group. A decision to purchase insurance coverage does not affect the cost or availability of any extension of credit. GAP insurance coverage is limited to 125% of the NADA value of the vehicle.