Warranties & Protection

GAP and Extended Warranties are popular protection products that can help protect the investment in your vehicle and provide peace of mind. Here are some common questions we like to answer:

  1. What is Gap?
    If the value of your car is less than the balance of your auto loan, you’re upside down, and there is a gap that isn’t covered by standard insurance. This difference requires a special type of protection called Guaranteed Asset Protection, or GAP.
  2. Do you need Gap Protection?
    A car starts to depreciate as soon as you buy it, but never more than when you drive it off the lot – turning it from a new car to a used car. To estimate the anticipated depreciation and potential GAP risk, please contact your loan representative to ask to receive a GAP Risk assessment.
  3. How can GAP provide Peace of Mind?
    If your vehicle is ever totaled or stolen, a total loss, your primary insurance will usually pay only the current market value of your vehicle, less your deductible. If the actual cash value is less than your current loan amount, the result could be a financial gap where you must pay the difference between your loan balance and your insurance settlement. This could mean thousands of dollars out of your pocket.
  4. Why add a vehicle service contract or extended warranty?
    When buying any vehicle, there is always a chance of having a future mechanical breakdown. Mechanical breakdowns can be costly to repair. With a vehicle service contract, you can add protection against the unexpected and potentially high cost of vehicle repairs, in some cases eliminating the expense.
  5. What other benefits might an extended warranty offer?
    In most cases, the coverage cost is much lower than similar coverage offered by a dealership. Many times this coverage can be added to your auto loan with the credit union.
    The coverage is transferrable with the vehicle to offer increased person-to-person resale value.
    Additional benefits can also include roadside assistance, rental car reimbursement, road hazard tire coverage, and more. You can receive a 60-day risk-free look, and it ultimately reduces your risk of future out-of-pocket repair costs.
  6. Does my vehicle or loan qualify?
    Extended warranty or mechanical breakdown coverage is available for most vehicles up to 11 years old and with up to 200,000 miles on the odometer at the time of purchase. Some limitations apply, and you should ask your loan officer for further details.

Download the Digital Brochure AutoExam Vision Warranty.

Your purchase of additional warranties or Guaranteed Asset Protection plans underwritten by Vision Warranty Corporation and or in association with Auto Exam is optional and will not affect your application for credit or the terms of any credit agreement required to obtain a loan. Certain eligibility requirements, conditions, and exclusions may apply. Please contact your loan representative or refer to the Group Policy for a full explanation of the terms. “GAP” or Guaranteed Asset Protection is a voluntary, non-insurance program that may be included as an addendum to the loan agreement or waived. It is designed to help “waive debt” if the borrower’s primary insurance carrier deems the vehicle a total loss. However, GAP is not insurance, and the borrower must maintain sufficient vehicle insurance coverages throughout the loan term. All programs include limitations and exclusions that can result in the borrower being held responsible for all or part of the deficiency balance; please see the terms and conditions of your agreement.

Information contained herein is general information only. Please refer to your actual GAP Waiver Addendum for terms, conditions, coverage, limitations, and restrictions. You may cancel GAP during the first 60 days and receive a full refund of any fee paid.

Speak with your Loan Officer about the options available for your HCFCU loan today!