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.
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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.
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