Recent hurricanes, like Helene & Milton, have left thousands of vehicles in complete disrepair. At the end of October 2024, Florida had over 91 thousand insurance claims for damaged vehicles from back-to-back storms.
As car owners complete insurance claims, they run into an unexpected problem. The insurance payouts are lower than anticipated. In fact, in the event of a total loss, insurance companies may not cover the entire value of a vehicle. This leaves a gap, with many paying out of pocket, and Floridians are quickly learning about the downfalls of incomplete coverage.
Adding GAP coverage is important
Guaranteed Auto Protection (GAP) is not a new type of coverage. In fact, was introduced to Florida in the 90s. It’s an optional add-on that covers the difference between what’s owed on a car loan and what the insurance company pays if that car is stolen or totaled.
Even if you maintain your vehicle well, GAP is worthwhile coverage to guard your car’s value. A recent survey found about 39% of consumers purchase GAP coverage when they finance their car. After the most recent hurricane season, it can be expected that the percentage will increase.
Who should get GAP coverage on their vehicle?
- Those who make a down payment of 20% or less
- Those financing for terms of 60 months or longer
- Consider GAP while leasing a vehicle
- Borrowers who rolled over negative equity from a previous car loan
Where can you get GAP for free?
Achieva Credit Union offers free Guaranteed Asset Protection (GAP) with all eligible new and refinanced Achieva auto loans.
Your car is an investment. Protect it through the added benefit of GAP.
Reasons to finance your vehicle through Achieva:
Quick online approvals • Easy application • Local, personalized service
While you can get GAP coverage from many providers, you often must pay a lot to receive it. Don’t miss the chance to take advantage of this free offer, a $449 value, when you process an auto loan through Achieva. Visit your local branch to get started.
How weather further affects Floridians
On average, 14 named storms form in the Atlantic during hurricane season. Additionally, Florida is one of the states most at risk for flooding. Whether they use their GAP coverage or not, if you ask a Floridian, it’s a relief to know it’s there.
In closing, Guaranteed Auto Protection is helpful when dealing with a total loss of a vehicle. Consumers are urged to make informed decisions when purchasing high-value items like cars and to read the terms of their insurance carefully.
Need more financial content? Continue following the Achieva Life Blog for additional money-saving and lifestyle articles.
Free Guaranteed Asset Protection (GAP) promotional offer terms and conditions subject to change at any time. The GAP promotional offer coverage will be provided on the date the loan is funded for the term of your loan up to 84 months. Certain restrictions apply. Limit one GAP promotional offer per vehicle. Available on purchases and refinances of new and eligible used vehicles with funded loan amounts of $5,000.00 or more from November 1, 2024 to February 28, 2025. Commercial vehicles, Indirect Auto Loans and refinancing of existing Achieva Credit Union vehicle loans are not eligible. Internal refinances may be subject to a $200 refinance fee. If you choose to refinance your loan with Achieva Credit Union, we may be able to reduce your APR. However, if you choose a loan term that is longer than the term left on your current loan, you will pay interest over a longer period of time and the overall cost of the loan may be higher. Rates are subject to change without notice. All loans are subject to approval. Membership qualifications apply.
GAP is not insurance; it is an optional debt cancellation product. GAP will not affect your application for credit or the terms of any credit agreement you have with us. Certain eligibility requirements, conditions and exclusions may apply. Purchase of GAP is optional and will not affect your application for credit or the terms of any existing credit agreement.
