Vehicle GAP Insurance

What is GAP Insurance?

GAP insurance is an insurance policy that insures MC EFCU members for the amount still due to payoff their loan if, due to an accident, stolen car or other cause, the insurance company declares the car a total loss and pays less than the payoff of the loan due to MC EFCU.

How gap insurance works

Let's say you buy a new car for $20,000. You put $500 down and your payments are $350 per month. Six months after buying your car, it is involved in an accident and totaled.

Your collision insurance company determines that your six-month-old car is now worth only $16,500. They will pay you that amount (less your collision deductible if the accident is your fault). You've made six monthly payments plus your down payment, for a total of $2,600; you still owe $17,400 on the car. In a case like this, gap insurance would pay the $1,100 difference between what collision insurance covers ($16,500) and what you owe on the car ($17,400). If you did not have gap insurance, the extra $1,100 would come out of your pocket. 

Gap Protection is an affordable way to fill the gap. For just a few dollars per month, members can protect themselves against this kind of unexpected expense.

Any other benefits?

Members achieve peace of mind. No financial burden from vehicle total loss. GAP insurance can also help to protect MC EFCU member's credit rating. Because the member will have a down payment for their next vehicle if they finance it with MC EFCU . The member can finance the GAP insurance premium into their car loan.

How much does GAP Insurance cost?

The regular GAP insurance premium is $275. This cost can be financed into a member's loan.