FORUM Credit Union's website works best with JavaScript enabled


If your vehicle is totaled or stolen, will you be covered?

That new vehicle may be your pride and joy. But here’s a reality check. Unless you’ve bought an exceptionally in-demand model, a new vehicle typically loses about 20% of its original value as soon as you take delivery.* Unfortunately, that doesn’t change the balance on your vehicle loan. For the time being you have what’s called negative equity. You owe more than what the vehicle’s worth.

Years later, the balance on your loan and the vehicle value will even out. At that point, if your vehicle is totaled or stolen, your primary insurance will probably cover about what you owe. Until then MEMBER’S CHOICE™ Guaranteed Asset Protection (GAP) can help cover the gap and protect you from a potential loss of thousands of dollars.

With GAP you gain deductible assistance, which reimburses your deductible when a comprehensive or collision claim is paid through your insurance carrier and a deductible is incurred, up to $1,000.

Both new and used vehicles depreciate quickly. The average is 20% in the first year.1 And people are extending their loan terms to lower their payments, which means they have negative equity risk even longer.  A recent poll conducted shows that drivers intend to keep their vehicles for ten years or more.**

You can deflect some of this risk by adding MEMBER’S CHOICE GAP to your vehicle loan. If your vehicle is stolen or totaled, GAP will help cancel the difference between the primary insurance settlement and what you may still owe. That could be a big relief if you need to come up with a down payment and replace a stolen or totaled vehicle immediately.

With the rising cost of vehicles, fast depreciation and longer vehicle loan terms MEMBER’S CHOICE GAP may be a smart option to add, helping to cover the negative equity gap.  If you choose GAP, adding the product fee to your loan amount will increase the cost of GAP.

Your purchase of MEMBER’S CHOICE™ Guaranteed Asset Protection 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 Member Agreement for a full explanation of the terms of MEMBER’S CHOICE Guaranteed Asset Protection (GAP) or Contact Us to request additional information or a complementary quote right now.


* AOL Autos, “Is Buying A New Car Worth It?”, 2010
* Gerson Lehrman Group, ‘Majority of Drivers Plan on Holding on to Vehicles More Than Ten Years’, 2010

Not NCUA insured. Not Obligations of the Credit Union. May Involve Investment Risk and Loss of Principal.