Auto Loan Protection for Members
Today individuals are financing loans for longer terms and with little or no money down, their vehicles are quickly losing value in relationship to their loan. This causes a critical gap between the true vehicle value and what they actually owe on the vehicle.
To help deal with this “gap,” CUDL offers participating credit unions Guaranteed Auto Protection (GAP) for their members. CUDL GAP, administered by an authorized carrier, protects the member and limits the member’s financial obligation between the outstanding balance as of the date of loss and
the member’s insurance settlement in the event the vehicle is deemed a total loss due to an accident or theft.
An Added Level of Protection
With this valuable coverage, credit union members can now have an added level of protection on their vehicle. CUDL GAP protects new and used vehicles with an MSRP or retail book value up to $100,000. The plan also covers insurance deductibles up to $1,000. Even if a member’s primary insurance is no longer in effect—whether it has lapsed or been cancelled—CUDL GAP covers the difference between what the primary insurance would have paid and the loan payoff as of the date of the loss.
An Additional Source of Revenue
Here’s even better news! By promoting this product to members, credit unions can lower their overall program costs because they receive a payment for each CUDL GAP contract sold at the dealership and funded by the credit union. For example, if 25% of a credit union’s retail installment contracts include CUDL GAP from dealers, they can offset CUDL fees by as much as $10 per funded contract. Plus, credit unions can strengthen dealer relationships by promoting this additional business
opportunity and members will appreciate receiving the added coverage and protection for their investment. It’s a winning scenario for everyone.
Now Introducing CUDL WebGAP
We are pleased to also offer a second alternative for credit unions to present GAP to their members—right in their own branches! Credit unions can choose to offer CUDL GAP to members directly at the branches through CUDL WebGAP. It provides an electronic, paperless method for selling and submitting CUDL GAP policies at the credit union. For no extra charge, credit unions can submit a member’s GAP application using an easy-to-navigate and secure web-based system. To make sure that your staff is comfortable with this process, CUDL provides extensive training and support as well. WebGAP offers a simple solution to getting policies remitted accurately and on time. Currently, WebGAP is available to credit unions in several states. |
