Gap Insurance: Dcu's Coverage Options

DCU offers GAP insurance, also known as Guaranteed Asset Protection, to its members. This insurance covers the difference between what is owed on a vehicle and its cash value in the event that it is totalled in an accident or stolen. GAP insurance is an optional vehicle loan add-on that helps pay off the loan if the vehicle is stolen or damaged beyond repair. It costs a one-time fee of $599 and can be purchased for both new and used vehicles.

DCU's GAP insurance covers new and used vehicles

GAP Advantage, offered by DCU, can be purchased for a one-time cost of $599 for both new and used vehicles. This insurance supplements your primary auto insurance coverage. For the one-time cost, GAP Advantage covers the difference between the actual cash value of your car and your outstanding loan balance. It may even cover your insurance deductible—up to $1,000—as part of your claim settlement (not available in all states). Plus, it covers an additional $1,000 credit toward the financing of a replacement vehicle if you finance your new or used vehicle with DCU within 90 days of the date your vehicle was determined to be a total loss.

Enrolling in GAP Advantage is easy, and coverage begins immediately.

GAP insurance costs a one-time fee of $599

DCU offers GAP insurance, also known as Guaranteed Asset Protection, for a one-time fee of $599. This insurance is designed to protect drivers in the event that their vehicle is damaged beyond repair or stolen. GAP insurance covers the difference between the actual cash value of the car and the remaining loan balance, which regular auto insurance does not cover. This is especially important for new vehicles, as their value declines rapidly and it is easy to owe more on the vehicle than it is worth.

GAP insurance from DCU also offers additional benefits, such as covering the insurance deductible of up to $1,000 and providing a $1,000 credit towards the financing of a replacement vehicle if financed with DCU within 90 days of the total loss of the previous vehicle. Enrolling in GAP insurance is easy and coverage begins immediately.

GAP insurance is a valuable form of protection for all drivers, as it covers a range of vehicles, including cars, vans, light trucks, and motorcycles, and can be purchased for both new and used vehicles. It provides peace of mind and financial protection in the event of an accident or theft, ensuring that drivers are not left with a large debt on a vehicle they can no longer use.

The reasonable one-time cost of $599 for GAP insurance through DCU is a great value and substantially less than what you would pay for similar coverage elsewhere. This fee provides drivers with the assurance that they will not be burdened with additional financial stress in the event of a total loss of their vehicle.

GAP insurance covers the difference between the vehicle's value and the outstanding loan

Guaranteed Asset Protection (GAP) insurance is an optional form of car insurance that covers the difference between the value of a vehicle and the outstanding loan amount in the event of a total loss. This type of insurance is designed to protect drivers when their auto loan balance exceeds their car's current market value.

GAP insurance is particularly useful when a driver has a small down payment and a long loan repayment period, as this can result in owing more on the vehicle than its current value. In such cases, if the car is involved in an accident or is stolen, standard car insurance will only cover the current market value, leaving the driver with outstanding debt. GAP insurance fills this gap by reimbursing the driver for the difference between the outstanding loan amount and the depreciated value of the car.

For example, if a driver has a $25,000 loan for a new car and has been making regular payments, after a few years the car may be worth $20,000 but they still owe $25,000 on the loan. If the vehicle is then involved in an accident and is deemed a total loss, without GAP insurance, the driver would only receive $20,000 from their insurance company (minus their deductible) and would be responsible for the remaining $5,000 on the loan. However, with GAP insurance, the driver would be covered for the $5,000 gap and would not have to pay this amount out of pocket.

GAP insurance is typically offered by car insurance companies and dealerships, and it can be added to an existing comprehensive auto insurance policy. It is important to note that GAP insurance does not cover engine failure, transmission failure, or other mechanical repairs, and it is not required by any insurer or state. However, some leasing companies may require GAP insurance for leased vehicles.

GAP insurance covers vehicles such as cars, vans, light trucks and motorcycles

Guaranteed Asset Protection (GAP) insurance is an optional product that covers the difference between the amount you owe on your auto loan and the amount your insurance company pays out if your car is stolen or damaged beyond repair. This is particularly useful if your loan balance is higher than the value of your vehicle.

GAP insurance covers a range of vehicles, including cars, vans, light trucks, and motorcycles. It is designed for all drivers, whether they have a new or used vehicle. This type of insurance is especially beneficial if you have made a small down payment on your vehicle, as it can protect you financially when you owe money on a depreciated vehicle.

For instance, if you have only made a small down payment on a new car, in the early years of ownership, the amount of the loan may exceed the market value of the car. In the event of an accident where your car is badly damaged or written off, GAP insurance will cover the difference between the current value of the car (covered by standard insurance) and the amount you still owe on the loan.

In addition to cars, GAP insurance also covers vans, light trucks, and motorcycles. This means that regardless of the type of vehicle you own, you can have peace of mind knowing that you are protected financially in the event of an accident or theft.

GAP insurance is a valuable tool to protect yourself from unexpected financial losses associated with your vehicle. By covering the difference between the insurance payout and the loan amount, GAP insurance ensures that you are not left with a significant financial burden if your vehicle is stolen or damaged beyond repair. This type of insurance is especially relevant for vehicles that depreciate quickly, such as cars, vans, light trucks, and motorcycles.

DCU also offers mechanical breakdown insurance

DCU offers mechanical breakdown insurance (MBI) to its members. MBI is a good deal if you plan on keeping your car for a while. It is sold through the credit union at a competitive price for new and used car coverage. The cost is about half of what a dealer would charge for a typical extended warranty.

DCU's MBI has the following features:

• You can buy coverage for both new and used vehicles.
• There are three plans to choose from – Easy Street, Main Street, and First Street.
• All plans include 24-hour emergency roadside service and rental car allowance.
• There is nationwide protection.
• There is a complete line of coverage designed to keep your vehicle on the road.
• There is no deductible on covered parts and labor.
• There is a 60-day "Free Look" – you can cancel for any reason within the first 60 days and get a full refund.

MBI is a true insurance product that creates a direct relationship between the vehicle owner and the insurance company. MBI coverages and premiums are regulated by state insurance departments.

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