Guaranteed Asset Protection (GAP)
Now you can protect your vehicle investment with Guaranteed Asset Protection (GAP). GAP offers protection in the event that your vehicle is stolen or damaged beyond repair (deemed a Total Loss) and is available for borrowers that finance their vehicle(s) with a loan from Ozark Federal Credit Union.
Here's how GAP works. Let's say after one year, the vehicle you purchased for $25,000 is now valued at just $16,000, but you still owe $20,000 when it is involved in an accident and your insurance carrier deems it a Total Loss. Most insurance policies will only reimburse you for the "Actual Cash Value (ACV)" of your vehicle, $16,000 in this case, leaving you with a large loan balance and no vehicle. Here is an example of what you would owe without GAP;
· Amount you owe on your auto loan = $20,000
· Your Insurance Company “ACV” = $16,000
· Your Insurance Deductible = $500
· Amount Paid by your Insurance = $15,500
· Remaining loan balance due. Might be subsidized by GAP Coverage = $4,500
What's the cost for this valuable protection? Our GAP is just $395 for most types of collateral like new and used cars, trucks, and motorcycles. GAP is also available on RVs, boats, and travel trailers, but the fee is determined by the Amount Financed and loan term. This is a small price to pay for real peace of mind!
GAP...For Affordable Peace of Mind**. For more information, please contact the OFCU Loan Department at 573-686-7221 to assist you with this product.
**This is general information only. Please refer to your actual GAP Waiver Addendum (GAP) for terms, conditions, coverage, limitations, and restrictions. GAP is not an insurance policy and does not replace or eliminate the need for vehicle insurance coverage. GAP is designed to "help" reduce the difference between your primary carrier insurance settlement and the loan balance at the date of loss. However, there are exclusions and limitations for items like delinquent payments, late charges, refundable items, and financing more than the allowable Loan to Value (LTV%) limit that could leave you responsible for a loan balance after the GAP benefit is applied to your loan. You may cancel GAP during the first 60 days and receive a full refund of any fee paid. GAP is non-refundable in most states after the first 60 Days.