Guaranteed Asset Protection (GAP)

When a vehicle is totaled or stolen, Guaranteed Asset Protection, or "GAP" is a plan designed to cover the difference between your loan balance and the settlement provided by your auto insurance carrier*. In addition, the GAP plan will also cover your auto insurance deductible, up to $1,000.

Example of How GAP Works:
Original Loan Balance		$25,000
Loan Balance After One Year		$21,000
Insurance Settlement After Accident		-$16,000
Auto Insurance Deductible		-$500
Remaining Unpaid Loan Balance Without GAP		$5,500
Loan Balance With GAP Coverage		$0

You may be eligible to receive an additional $1,000 benefit. This $1,000 is used toward the purchase or lease of a replacement vehicle when financed through Western. To receive the $1,000 Advantage Benefit, there must be a total loss, and a new loan must be made for the replacement vehicle at Western within 90 days of when the vehicle is determined to be a total loss.

GAP Features:

• GAP is offered by Allied Solutions and underwritten by Balboa Life & Casualty, rated "A-" by A.M. Best Company
• GAP is a supplemental coverage and does not replace standard comprehensive, collision and liability coverage
• Loan terms up to 84 months are covered

GAP Cost:

• $295 for automobiles, trucks, vans, Sport Utility Vehicles, motorcycles, golf carts, jet skis and snowmobiles
• The cost for boats, travel trailers and motor homes is:
  $374 for loans under $25,000
  $688 for loans $25,001 - $50,000
  $960 for loans $50,001 - $75,000
  $1,690 for loans $75,001 - $125,000
  
  (The cost of GAP is a one-time fee and covers the length of the loan term.)

Here are few reasons you should have GAP:

Every 26 seconds, a motor vehicle is stolen in the United States. The odds of a vehicle being stolen in 2003 were 1 in 190, with the highest rate being reported in the Western U.S. And in 2004, there were over 6.2 million police-reported motor vehicle traffic crashes**.

Unfortunately, things don't always go as planned. If your vehicle is stolen, accidentally damaged beyond repair, or declared a "total loss", your automobile insurance will cover the vehicle's replacement or "market value". But the insurance settlement may not be enough to pay off your loan balance, causing a deficiency or "gap".

Visit Allied Solutions web site to learn more about Guaranteed Asset Protection (GAP) or contact our Loan Center at 877-254-9328, option 3.

*GAP benefits do not include: loan interest accrued after the date of loss; amounts added to the loan after the loan has been funded, including late charges or other fees; credit insurance premiums; Mechanical Breakdown Protection or service contract fees; deductions made by your primary insurance carrier for damages previously paid to you; salvaged or reconstructed vehicles; vehicles used for commercial purposes; vehicles titled under a business or used to carry passengers for hire (i.e., taxi cabs); losses due to forgery, dishonest acts or intentional losses. GAP is not insurance, does not provide general liability coverage, nor does it fulfill the requirements of any financial responsibility laws.

**The Insurance Information Institute

Western Federal Credit Union does not endorse, warrant, or guarantee any of the products or services offered by Allied Solutions, nor any act by them.