There could be a big difference between what your automobile insurance will pay and what you owe on your loan. This is especially true in the first few years of ownership. Most cars depreciate by thousands of dollars as soon as they are purchased, and you may have put only a small down payment on the car.

In the event that your vehicle is stolen, accidentally damaged beyond repair, or otherwise declared an insured total loss, your insurance company pays the actual cash value of the vehicle at the time of loss — not what the vehicle is really worth to you.

You are still liable to pay the difference, or the “gap” between your insurer’s settlement and your loan balance.

This deficiency, added to the amount of your deductible, and other expenses, can easily be thousands of dollars. Instead of having money to put down on a replacement vehicle, you actually end up with huge out-of-pocket expenses to cover your loan balance.

GAP Coverage Can Save You Thousands

For just a few dollars a month, GAP pays the difference between the value of your vehicle and what you still owe on your loan.

• Protection from significant financial loss
• Available for new and used vehicles
• Gives you peace of mind
• Protects your credit rating
• Covers insurance deductible to $1,000
• Low one-time cost of $295 which can easily be added to your loan
• Available at loan origination and on existing Dominion Credit Union auto loans

Be sure to ask for GAP Protection when you apply for your Dominion Credit Union vehicle loan online or call 800-268-6928.