You have insurance, but it may not cover your loan balance in the case of a total loss or an unrecoverable theft. We provide GAP which pays, subject to the terms of the program, the difference between the insurance company's settlement and your protected 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 primary insurance company’s settlement and the protected loan balance
• Provides member with peace of mind
• Is 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 $100,000
• GAP coverage up to $50,000
• 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 only the time of closing
• Deductible may not exceed $1,000

Exclusions

• Commercial use vehicles
• Emergency, salvage-titled, classic or racing vehicles
• Vehicles over 1 ton
• Vehicle with dual-wheeled rear axles
• Trailers, commercial equipment and accessories
• Vehicles primarily garaged or used outside the United States

How do I file a claim?

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

Additional Information

You can cancel coverage within the first 90 days of purchase for full 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.