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 Auto Buying / Guaranteed Auto Protection Insurance
Click here to see how GAP Insurance can save you money & give you added protection!
Guaranteed Auto Protection (GAP) can protect you against financial loss in the event an auto or other types of vehicles are damaged beyond repair, or stolen and never recovered. Since a vehicle's value declines as a result of depreciation, the loan balance can be higher than its Actual Cash Value (ACV). Without GAP coverage, you would be responsible for paying the difference between the insurance settlement and the outstanding loan balance. With the purchase of GAP, the deficiency balance may be covered.
What does the GAP Advantage Waiver cover?
The GAP waiver is available for new and used private passenger autos and light duty non-commercial trucks. GAP covers the difference between the ACV of the vehicle and the outstanding loan balance at the time of loss, including up to $1,000.00 of the primary carrier's deductible. ACV is determined by your primary insurance carrier, or independent adjuster if no primary carrier covers the vehicle. In the event of a total loss you will be eligible for a $1,000.00 credit toward the financing of your replacement vehicle. This benefit is only available if you return to the TBACU within 90 days to finance your replacement vehicle.
Benefits to the Borrower
- Eliminates or reduces "out-of-pocket" expense for remaining loan balance after loss settlement
- Borrower is able to purchase replacement vehicle because there is little or no carry-over balance
- Protects borrower's credit rating
- Waiver may be fully refunded within 60 days of its inception
Limitations: No GAP Waiver Shall be Issued For
- Loans with terms longer than 84 months
- Any type of vehicle not currently listed in NADA/Kelly Blue Book
Exclusions: Items/Vehicles Not Covered
- Items not related to the purchase of the vehicle such as credit life insurance & extended warranties
- Loss occurring prior to the date of the GAP policy
- Past due amounts greater than 60 days
- Portion of loan that exceeds 150% of MSRP (new) or 150% of NADA/Kelly Blue Book retail (used)
- Past due payments or any other charges, such as interest, that occur after the date of loss
- Primary insurance deductible in excess of $1,000.00
- Commercial vehicles, rental vehicles, taxi cabs, buses, limousines, salvage vehicles
- Intentional acts of the borrower
How Does Guaranteed Auto Protection Advantage Work?
| Your vehicles actual cash value |
$13,000.00 |
| Your deductible |
$1,000.00 |
| Insurance settlement |
$12,000.00 |
| Loan balance after one year |
$15,000.00 |
| Insurance settlement |
$12,000.00 |
| GAP Advantage Pays |
$3,000.00 |
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Without GAP Advantage coverage, you would be required to pay this $3,000.00 in order to pay off your loan balance. And you would have to pay an additional "down payment" on your next vehicle.
With GAP Advantage, an additional $1,000 benefit is provided when the following conditions are met:
- Your primary insurance does not pay off your original loan
- You return to the original lender for vehicle replacement loan
- Lender approves your new loan
To find out more information on how TBACU's Guaranteed Auto Protection program can benefit you, please click here.
For more information about TBACU or to find out how you can join, please call 713-336-5500 or 800-577-3164, visit any branch office or e-mail us.
To apply for membership please contact us.
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