Greater Kinston Credit Union offers Guaranteed Asset Protection (GAP) Coverage on new and used vehicle loans for a flat fee of $325 at the time the vehicle is financed or refinanced. GAP Coverage is an optional debt cancellation product that provides peace of mind by covering the difference between the amount you owe on your vehicle loan and the amount you recover from your insurance claim, as determined by your auto insurance provider, due to an “at fault” or “not at fault” accident, theft or flood.
If your vehicle is totaled, the insurance settlement is based on the actual cash value of the vehicle not the outstanding loan balance. This difference could create a “gap” (money you still owe on the loan) after the primary insurance settlement has been paid. With GAP Coverage, this deficiency would be covered up to specific parameters.1