GAP INSURANCE
Guaranteed Auto Protection (GAP) Coverage
Guaranteed Auto Protection or GAP offers liability protection to financial institutions
after their borrowers have financed a new or used vehicle. For borrowers, GAP protects
them against financial losses stemming from irreparable damages or irrecoverable thefts of
their vehicles.
What does Guaranteed Auto Protection cover?
The value of a vehicle in today’s market depreciates rapidly during the first few
years of ownership and with loans being amortized over a longer period of time exposure
exists in the case of a total loss or theft. GAP insurance protects the borrower and the
lender from the deficiency that exists between the insurance settlement and the loan
payoff. GAP protection helps defray the insurance shortfall and potential out-of-pocket
costs.
Lender benefits are: ·
· Reduced credit and loan losses
· Non-interest income opportunities
· Borrower satisfaction
· Easy administration
Borrower benefits are:
· Protection of borrowers credit rating
· Prevents borrowers financial hardship
· Limited exposure in the event of a total loss
· Ability to purchase another vehicle affordably
· Peace of mind
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The FICOR staff is always willing to help
us with our inquiries on how to handle certain claim incidents and, if they do not know
the answer, they get back to us in a timely manner. From the moment we file an
insurance claim to the issuance of a settlement check [the process is] very timely. |
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Rolla Federal Credit Union
Rolla, MO |
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