You have insurance, but it may not cover your loan/lease balance in the case of a total loss or an un-recovered theft. We provide GAP which pays, subject to the terms of the program, the difference between the insurance company's settlement and your loan balance. This coverage is available for automobiles, trucks and motorcycles.

Here's what happens!

You secure a loan. In the first two or three years, depreciation occurs faster than the reduction in the loan balance. If a theft or a total loss occurs, your insurance company will pay only the actual cash value of the collateral. The actual cash value may NOT pay off the balance of your loan. You are left with a GAP, an unpaid balance you still owe to your lender.

Consider this illustration: 

Benefits

• Low cost coverage
  • Cars and Trucks - $395
  • Motorcycles - $395
• Covers qualified gap between the actual cash value and loan payoff
• Provides member with peace of mind
• Can be used in conjunction with current auto insurance coverage
  

How do I get protection?

Simply ask your Arizona Federal loan consultant during the loan closing process. It's easy, inexpensive and it eliminates the worry you may be left with a gap!

Product Requirements

• Covers loans up to $150,000 (depending on type of collateral)
• GAP coverage up to $50,000 (depending on type of collateral)
• Up to 150% of MSRP, or 150% of Kelly Blue Book retail for pre-owned vehicles
• Loan term up to 84 months
• GAP can be purchased at the time of closing or within the first two years of buying your vehicle.

Exclusions

• Commercial use vehicles
• Racing vehicles
• Vehicles over 1 ton
• Vehicle with dual-wheeled real axles
• Deductible may not exeed $1,000
• Must be financed through Arizona Federal to receive $1000 benefit

How do I file a claim?

Report the claim to your primary insurance company or agent. If they declare that a total loss or theft has occurred and a gap between the primary insurance company's settlement and the loan or lease balance occurs, then report the claim to your lender, submit a copy of your insurance company's settlement statement and, in case of theft, a copy of the police report to your lender/lessor.

Additional Information

You can cancel coverage within the first 60 days of purchase for a refund. GAP insurance coverage expires when:

• Member pays off the loan
• Vehicle is sold, assigned or transferred
• Member refinances the loan
  

For more information about GAP insurance or any of our other products, please contact us at (602) 683-1000 or toll free 1-800-523-4603.