GAP Insurance  & MBI Protection

GAP Insurance & MBI Protection FAQs

• What does GAP insurance actually cover?

  GAP insurance covers the difference between your car's current book value and the amount you owe on your loan or lease in the event your vehicle is totaled or stolen. It ensures you aren’t stuck paying the remaining balance out of pocket. Your coverage typically excludes your deductible, extended warranties, and other add-ons.

• Will GAP insurance pay off my loan?

  GAP insurance doesn’t directly pay off your auto loan. Instead, it covers the difference between what you owe on your loan and the amount your car insurance pays if your vehicle is totaled or stolen. In other words, it helps ensure you won’t have to pay the remaining loan balance out of pocket if your insurance payout is less than your loan balance.

• How does a GAP work when a car is totaled?

  In the event of a total write-off, GAP insurance works by stepping in to cover the difference between the cash value of the vehicle as determined by your car insurance company and the outstanding balance on your auto loan or lease. However, GAP insurance will not pay your deductible and does not cover missed loan payments, penalties, or other financial liabilities associated with your loan.

• Who offers GAP insurance?

  You can buy GAP insurance from credit unions like WEOKIE, banks, car dealerships, and specialist auto insurance outfits. Look for providers who offer comprehensive coverage worth the cost of GAP insurance.

• What is the most GAP insurance will pay?

  GAP insurance typically covers up to a certain percentage of the actual cash value of your vehicle. This is intended to eliminate the “gap” between the cash value of your car and the outstanding loan or lease balance. Different policies will offer different coverage limits under various conditions. For example, WEOKIE Federal Credit Union’s GAP policy covers up to 125% of your vehicle’s remaining loan balance in the event your car is stolen.

• What is not covered under mechanical breakdown?

  Mechanical breakdown insurance typically does not cover the following:

  • Routine maintenance, such as oil changes, tire rotations, and brake pad replacements.

  • Wear and tear on items that degrade naturally with time and use, such as brake linings, clutches, and windshield wipers.

  • Damage from accidents, which should be covered by collision or comprehensive auto insurance.

  • Cosmetic Damage, such as scratches, dents, and upholstery stains.

   

• Do I need to be a WEOKIE member to qualify for GAP or MBI coverage?

  Yes, you do need to be a WEOKIE member to qualify for GAP or MBI coverage. Membership is open to: 

  • Anyone who lives, worships, works (or regularly conducts business in), or attends school in the Oklahoma City area, consisting of Canadian, Cleveland, Grady, Lincoln, Logan, McClain, Oklahoma, and Pottawatomie Counties (as well as spouses of persons who died while within the field of membership of the credit union)

  • Employees of the credit union

  • Volunteers in the community

  • Current WEOKIE members’ immediate relatives (including spouses, children, siblings, parents, grandparents, grandchildren, stepparents, stepchildren, step-siblings, and adoptive relationships)