Guaranteed Asset Protection
You could lose more than your automobile, boat, motorcycle, or RV if it is stolen or involved in a major accident. Most insurance policies only cover the value of your vehicle – something that rapidly declines during the first few years of ownership – and as a result, your loan balance could be higher than the value of your vehicle. You would be obligated to pay the balance of your loan.
Now you can protect yourself with GAP (Guaranteed Asset Protection). GAP is a non-insurance product that covers the “gap” between the vehicle’s value and the amount you still owe. Essentially, GAP protects you from substantial loss.
How GAP Coverage Helps You
Auto and RV dealers also offer GAP, but at a substantially greater cost than Armco CU. It’s never too late to add GAP coverage to your existing Armco CU vehicle loan. Please contact Account Services for more information on this low cost coverage.
|Original purchase price||$25,000|
|Loan balance after one year||$21,000|
|Vehicle’s value as determined by your insurance company||$16,000|