Rising Gas Prices Not Likely To Affect GAP
With rising gas prices having the reverse effect on the value of used SUVs, officials with State National Cos. say they do not participate any fallout on GAP insurance.
GAP Product Manager Francine Gagliano said State National has previously performed research on gas prices and the fallout on GAP insurance and SUVs and small trucks. Even before the 2005 hurricane season and the current surge in gas prices, Gagliano said no large effect was found in the study.
"We haven't seen any impact yet. You might see some reaction, but people are going to drive what they want," she said.
Gagliano said demand for GAP insurance is strong with financial institutions of all types, and she urged credit unions to keep GAP insurance at the forefront of their offerings, noting that many members have have been consolidating their vehicle loans as part of home equity loans and lines of credit.