Valdosta Teachers' Federal Credit Union

In the event your vehicle is deemed a total loss due to an accident or theft, your auto insurance policy will usually cover only the actual cash value or market value of your vehicle less a deductible. This settlement could be significantly less than the amount you owe to your lender or leasing company. The final result is a financial GAP where you must make up the difference, which could mean thousands of dollars out of your pocket.

Guaranteed Auto Protection Plus protects individuals who finance a new or used vehicle from the financial GAP.

In the current market, during the first few years that you own your vehicle,

Guaranteed Auto Protection Plus is a loan/lease deficiency waiver and is not offered as insurance coverage.

your loan/lease balance can be higher than the actual value of your vehicle, as a result of depreciation. As your vehicle's value declines, your loan/lease balance may decline more slowly, resulting in a financial gap.
If your vehicle were stolen or totaled in an accident, you would be liable to pay the difference between your insurance settlement and your outstanding loan/lease balance.

Guaranteed Auto Protection Plus covers the difference between the actual cash value of your vehicle and the loan/lease balance, less delinquent payments, late charges, refundable service warranty contracts and other insurance-related charges.

Guaranteed Auto Protection Plus will even cover your auto insurance deductible of $500. The actual amount depends on your credit union's program limits. Ask your lender/loan officer for details.

*GAP is required for members financing 72months and more than 100 percent of MSRP on new vehicles and 100 percent of NADA retail on used vehicles.