RALEIGH, N.C. — State Employees’ Credit Union is now offering Guaranteed Asset Protection coverage on new and used vehicle loans.
Considered a debt cancellation product, GAP is a contract between the borrower and the lender where in exchange for a fee, the remaining debt may be cancelled under specific circumstances involving a total loss claim of a covered vehicle due to an accident, theft or flooding.
The coverage provides protection to the borrower should a “gap” exist between the vehicle loan amount and any insurance settlement deficiency based upon the fair market value of the vehicle at the time of the total loss.
Interested SECU members would pay a one-time fee of $135, for the coverage.
“In today’s market, the price of vehicles combined with immediate depreciation after purchase, make GAP coverage a beneficial option to many borrowers. GAP has the potential to save borrowers thousands of dollars if the vehicle is involved in a total loss claim,” said SECU Personal Lending Vice President Bobby Gardner.