Guaranteed Asset Protection (GAP)

Guaranteed Asset Protection (GAP) Plus Auto Deductible Reimbursement (ADR)

“Get low-cost protection with GAP!”

If all goes well, the car or truck you buy will be around for years. Unfortunately, things don’t always go as planned. If your vehicle is stolen, accidentally damaged beyond repair, or otherwise declared an insured total loss, your auto insurance will cover the replacement value of the vehicle. However, you remain responsible for paying for any difference between the insurance settlement and your outstanding loan balance. This deficiency can easily amount to thousands of dollars.

East River Federal Credit Union’s GAP coverage is an affordable way to fill the gap between the book value of your vehicle and your loan balance. For just a few dollars, you can protect yourself against this kind of unexpected expense. GAP coverage is an inexpensive way to insure that you will not sustain a loss. Call the credit union today to add GAP to your new loan!

How GAP coverage works

GAP coverage will pay the difference between the amount paid by the primary insurer (the actual cash value) and your outstanding loan balance. It also pays your primary insurance deductible, up to $1,000, plus pays $1,000 towards the purchase of another vehicle that is financed at East River FCU!

Loan Amount $25,000
Term 60 months
Loss Date 36 months
Loan Payoff $15,000
Insurance Settlement* $12,000
GAP ($3,000)
Insurance Deductible ($1,000)
Potential Out-of-Pocket Expense ($4,000)
GAP Payment to Lender $4,000
Out-of-Pocket Expense with GAP Protection $0
*Actual Cash Value of Vehicle

What does GAP cover?

  • Automobiles
  • Campers / Motorhomes
  • Vans
  • Trucks
  • Personal Watercraft
  • ATV’s
  • Boats
  • Snowmobiles
  • Motorcycles

 ** Maximum deducible is $1,000. Maximum Loan to Value is 125%. Maximum loan term is 84 months. Maximum liability per claim is $50,000 for automobiles/ $50,000 for all other collateral.

Auto Deductible Reimbursement (ADR)

Included with your purchase of GAP coverage (autos and trucks only)!

East River Federal Credit Union is proud to offer our members an Auto Deductible Reimbursement Insurance that will help cover out-of-pocket expenses, such as your insurance deductible, when you have an accident or mishap with your vehicle.

  • Pays up to $500 per loss (unlimited) when claim is filed and paid with primary insurance carrier.
  • Loss means an event for which the auto insurance company has approved & paid a claim which exceeds the Covered Auto Deductible for a collision or comprehensive claim.
  • Coverage is effective upon date of enrollment and will continue for three (3) years. After the three year period, this feature is no longer valid, though the GAP program continues for the life of the loan.

If you suffer a loss during the Coverage Period which is covered by your Auto Policy, you may be entitled to reimbursement of the Covered Auto Deductible. Reimbursement will be equal to the Covered Auto Deductible on the Auto Policy, up to $500 per loss.

Not only does it provide this benefit on the vehicle for which the GAP was purchased, but also any other insured and registered vehicle in the member's name, within the same household. This can be a significant added-value benefit to those of you with more than one vehicle in the household!