Be Prepared

This motto never goes out of style… You can't plan for everything, but it's nice to know you're covered. That's why we offer our members affordable rates on GAP insurance and Payment Protection. If life throws you a curve ball, you'll still be able to hit it out of the park.

GAP Insurance

GAP + ADR = Peace of Mind

GAP Insurance Can Help Make Sure Your Car Is Paid Off After an Accident

If your insured car is totaled in an accident, or stolen and unrecovered, your auto insurance may give you a settlement based on the car's actual cash value (ACV), not what you paid for it. Since cars depreciate in value quickly, your settlement may not cover what you still owe on your auto loan. That could leave you with no car and a big bill to pay. Oshkosh Truck Credit Union's gap coverage can help avoid this unhappy scenario.

Let's look at an example:

Let's say your car cost $35,000 when new, and you currently owe $30,000.

If the car is totaled, the ACV of the vehicle may be only $25,000. You have a deductible of $500, so the car accident settlement is $24,500.

Your gap insurance coverage may pay the remaining $5,500 on the loan instead of having to come up with the money yourself.

Cost of GAP policy? Less than the deductible.

GAP insurance coverage adds more protection to your auto policy

Gap insurance is an optional insurance coverage for newer cars that can be added to your loan. It may pay the difference between the balance of your vehicle loan and what your insurance company pays if the car is considered a covered total loss. Without proper coverage, the gap between what you've paid and what you owe can be substantial.

Actual cash value determines how much your policy pays

Standard comprehensive and collision car insurance policies help pay for the replacement of your vehicle if it's a covered total loss – up to the limits of your policy and the car's actual cash value.

ACV is equal to the cost of the car when it was new, minus depreciation for age, mileage, physical condition and other factors. After just a year, the ACV of your car can be thousands less than what you paid for it, which can leave you with a significant loan balance.

OTCU's gap insurance may cover some, or all, of that amount.

GAP + ADR (Auto Deductible Reimbursement)

That's right. With OTCU's GAP plus ADR policy, you get the added benefit of coverage for not just this loan, but for other vehicles you own as well. Here's how it works. For the first 2 years of your GAP policy, if you are in an accident with ANY vehicle you own* (not just the one you have a loan on), you can get your insurance deductible reimbursed up to $500. And that's not all! You can get reimbursed for up to 2 claims per year. Plus your car doesn't have to be totaled to collect.

*See policy for full details.

Payment Protection

Unexpected injuries or illnesses can keep you from working, but your bills still need to get paid. Payment Protection keeps you covered if you can't work by taking care of your loan payment.

How Payment Protection Works

Payment Protection offered by OTCU helps relieve the financial stress and worry related to making loan payments when your life takes an unexpected turn.

Your loan payment* will be canceled for a period of time without penalty, added interest, or being reported as delinquent to the credit bureau when one of the following covered events occur:

  • Death – gives your family time to get back on its feet financially.
  • Disability – helps you avoid bills piling up as you try to regain your health and earning capacity. Use as a supplement to any disability coverage you may have at work (which usually covers only 60 percent of pay).
  • Involuntary Unemployment – gives you assurance during a difficult time that one of your major monthly expenses will be taken care of as you search for new employment.

* OTCU Payment Protection is available for closed-end consumer loans (if the loan has a term of 120 months or less). Restrictions apply. Contact our loan officer for full details.