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Tip of the Month

GAP Insurance

It's Time for Some Reflection on Protection

There could be a big difference between what your insurance will pay and what you own on your loan. Most cars depreciate by thousands of dollars as soon as they are purchased. Unfortunately, if your vehicle is stolen, accidentally damaged beyond repair, or otherwise declared as a total loss, you are still liable to pay the difference, or the "gap," between what your insurer's settlement and your loan balance. That gap will come out of your pocket for a vehicle that, for all practical purposes, no longer exists.

Service 1 Federal Credit Union offers additional protection to our members in case this or a similar situation should arise. Guaranteed Asset Protection (GAP) Insurance is a low-cost coverage that pays the potentially high-cost difference between your insurance settlement and your loan balance on items directly related to the purchase of your vehicle.

For more information on GAP Insurance contact a loan officer at 1-800-879-9697.