Understanding DCU Auto GAP Insurance

What Is GAP Insurance?

Guaranteed Asset Protection (GAP) insurance covers the difference between the actual cash value of a vehicle and the balance owed on a loan or lease when the vehicle is totaled or stolen. It protects borrowers from paying more than the car's worth.

Why DCU Offers GAP

Direct Credit Union partners with insurance carriers to provide GAP as an add‑on to auto loans and leases. The goal is to reduce financial risk for members who finance newer or high‑value vehicles.

Typical Coverage

GAP pays the remaining loan balance after the insurance payout for the vehicle's actual cash value. Coverage applies to:

• New or nearly new cars
• Leased vehicles
• Financed purchases with a low down payment

Eligibility Criteria

DCU members may qualify for GAP when they:

• Take out a new car loan or lease through DCU
• Choose a loan term of 60 months or longer
• Have a down payment of less than 20% of the vehicle's purchase price

Cost and Payment Options

GAP is typically added to the monthly loan or lease payment. The exact cost varies by:

• Vehicle price and model
• Loan term length
• Credit score

Members can also buy GAP separately through DCU's insurance partners if they already have a loan.

When to Consider GAP

Consider GAP if you:

• Have a high‑value vehicle that depreciates quickly
• Finance or lease a car with a short term or low down payment
• Plan to keep the vehicle long enough for depreciation to outpace loan balance

Claims Process

If the vehicle is totaled:

• The primary auto insurer pays the actual cash value.
• DCU's GAP insurance pays the remaining loan balance, up to the policy limit.

Exclusions and Limits

GAP does not cover:

• Personal belongings inside the car
• Damage from wear and tear
• Vehicles already paid off

How to Purchase

During the loan or lease application, DCU representatives can explain GAP options and add it to the financing package. Members can also request a separate GAP quote through the member portal.

Key Takeaways

• GAP protects against depreciation losses.
• DCU offers it for new car loans and leases with specific eligibility.
• Costs are added to monthly payments but can also be purchased separately.
• Claims are processed through the primary insurer and DCU's partner carrier.