Guaranteed Asset Protection (GAP) protects borrowers against financial loss in the event the vehicle is damaged beyond repair (totaled) or stolen and never recovered.

Since a vehicle's value declines as a result of depreciation, the loan balance can be higher than its Actual Cash Value (ACV).

Without GAP, the borrower would be responsible for paying the difference between the insurance settlement and the outstanding loan balance.



*Your purchase of GAP is optional. Whether or not you purchase GAP will not affect your application for credit or the terms of any existing credit agreement you have with Educators Credit Union. There are eligibility requirements, conditions, and exclusions that could prevent you from receiving benefits under GAP. Carefully read the contract for a full explanation of the terms.