Why is GAP Coverage, and Why Should I Care?
L. Wayne Mansur, TCCU President and CEO

GAP is a service that protects your investment in your car, truck, boat, motorcycle, or recreational vehicle. The following hypothetical example will demonstrate just how valuable this sort of coverage can be to you.

Let’s say you own a car that you purchased just one year ago for $25,000. Now, even though you still owe $21,000 on the loan, the car is valued at just (gasp!) $16,000. Then, the unthinkable happens. Your car is smooshed by a three-ton meteor. No problem, you think to yourself. I’ve got insurance.

Unfortunately, while meeting with your insurance agent, you get some bad news. Your policy will only reimburse you for the value of the vehicle! The $1000 deductible (which sounded like a good idea at the time) now only adds salt to your wounds. You’re stuck with a $6,000 unpaid loan balance, which could equate to two years of payments for a vehicle you no longer own!

GAP (Guaranteed Asset Protection) is a non-insurance product (technically a loan/lease deficiency waiver) that covers the difference between your insurance settlement and the payoff on your loan, and includes a deductible of up to $1000. It covers losses incurred when your vehicle is stolen and not recovered, or is totaled in an accident and can’t be repaired. GAP will also pay an additional $1000 toward the financing or leasing of a replacement vehicle.

I highly recommend GAP as a way for you to protect your investment in your vehicle. You may purchase GAP coverage for $225 from Texoma Community Credit Union at less than half the cost of the same coverage sold by many auto dealers. For more information, see one of our loan officers or ask for the brochure entitled “The GAP Advantage.”

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