| |
Most Vehicles, power sports, motorcycles, and boats depreciate by thousands of dollars as soon as they are purchased. And, if your vehicle, power sport, motorcycle, or boat is stolen, accidentally damaged beyond repair, or otherwise declared as a total loss, you will still be liable to pay the difference: the “gap” between the insurance settlement and your loan balance.
Guaranteed Auto Protection (GAP) helps cover the difference between your primary insurer’s settlement and your KEMBA loan balance. The GAP insurance offered through KEMBA bases the value on the loss through NADA with a maximum insurance term of 84 months and a loss amount of $50,000. The insurance will cover up to a 150% of MSRP (new vehicle) or 150% NADA average retail book value (used vehicles) at loan inception date. Policies are available on all new and used motor vehicles (except RV’s) for the life of the loan.
How Does GAP Work?
| You purchased a vehicle and financed |
$18,000 |
| At the time of your loss you owe KEMBA |
15,000 |
| Your insurance company says the actual Cash value of your vehicle is |
-10,000 |
| Your primary insurance deductible is |
500 |
| Your total out of pocket expense is |
$ 5,500 |
| GAP Coverage will pay |
-5,500 |
| The total you owe with GAP coverage To payoff your loan is . . . |
0 |
What Are Your Chances of Having a GAP?
- The “average” new car will lose 60% of it’s value over 3 years of normal driving, according to Automotive News.
- The Insurance Information Institute estimates that one vehicle is stolen in the United States every 24 seconds.
- 18% of vehicles involved in a collision will result in a total loss.
- Insurance companies report that every year a half million vehicles are written off as a total loss due to accident, fire, and theft.
Why Purchase GAP from KEMBA?
Dealerships charge between $495 and $595 for this valuable coverage, while your Credit Union only charges $250. You save $345 right off the top! And that’s not all. KEMBA members receive a .25% reduction on their loan interest rate when they combine GAP Insurance with Credit Disability and Life Insurance on their loan. This additional Vehicle Reward is in addition to any Membership Rewards rate reduction that has already been applied. |
|
