Skip to content

Payments, Settlement, and Outstanding Contributions

This page explains payments during eligible events, settlement, remaining pledge balance, out-of-pocket amount, authorized sharing amount, and outstanding contribution handling.

Member payment at pickup

When picking up a repaired vehicle after an eligible event, the member pays:

  • The selected Out-of-Pocket Amount.
  • The current Remaining Pledge Balance.

Payment is made directly to the repair shop. If the out-of-pocket amount is not paid, the repair shop may not release the vehicle.

Members can check Remaining Pledge Balance in the GDC app at any time. A member does not need a notification to know the remaining pledge balance.

Authorized Sharing Amount

Once damage assessment occurs and a repair estimate is prepared, the estimate is audited electronically and potentially by a dedicated professional.

The estimate is audited to determine:

  • Whether damages match the loss facts.
  • Whether the estimate follows GDC guidelines.
  • Whether the estimate follows industry best practices.
  • Whether the estimate meets OEM repair procedures.
  • Whether the estimate is state compliant.

If the vehicle is deemed a total loss, ACV is determined through an approved valuation service provider.

Authorized Sharing Amount is calculated by subtracting the member's Remaining Pledge Balance toward the loss from the Authorized Loss Amount.

Example event calculation

Example:

  • Authorized Loss Amount: $10,000.
  • Remaining Pledge Balance: $800.
  • Selected Out-of-Pocket Amount: $500.

The platform calculates Authorized Sharing Amount as $10,000 less $800, resulting in $9,200.

When picking up the car after repair, the member pays:

  • $500 Out-of-Pocket Amount.
  • $800 Remaining Pledge Balance.

From the member's personal perspective, the total is $1,300. The remaining $9,200 is handled through GDC sharing, subject to rules and limits of the plan.

Out-of-Pocket Amount levels and quote impact

Out-of-Pocket Amount is a fixed amount the applicant is responsible for paying as their portion of the loss amount for each eligible event.

GDC currently offers default options:

  • $250.
  • $500.
  • $1,000.

If the policy uploaded includes other out-of-pocket amounts, such as $750 or $2,000, matching options may also be provided.

A higher Out-of-Pocket Amount results in a lower quote price, and vice versa, because it reduces the Authorized Sharing Amount that may be shared by other members in an eligible event.

After a plan becomes effective, the OOP amount can be modified.

Direct disbursement and continued sharing after an approved event

Members who submit sharing requests and need reimbursement from GDC when no DRP is within 25 miles need to open a Stripe connected account with GDC to receive sharing contribution funds.

Once an incident is approved and shows Eligibility Review in the GDC app, the member's Remaining Pledge Balance temporarily stops being used to share the cost of other members' repairs.

After the repair event is completed, if the member still has pledge balance left, the member starts contributing to other members' repairs again. If the pledge balance is $0, the member does not participate in further sharing during the current GDC Plan.

Outstanding Contribution and failed charges

An Outstanding Contribution is an amount the member is required to pay but has not yet settled.

Outstanding Contribution can arise from:

  • Weekly Sharing Contributions.
  • Eligible Events, if the member fails to pay required Remaining Pledge Balance for costs such as vehicle repairs by the due date.

Members receive a grace period of 14 days to clear outstanding contribution. During this period, GDC attempts to charge required amounts and reminders are sent by email.

Payment failures may occur when the member's Payment Instrument has insufficient funds or credit. During the grace period, GDC may continue attempting to charge the full required amount.

Members need to settle the Outstanding Contribution within the grace period to avoid consequences under the GDC Plan.

If the required amount is not cleared by the end of the grace period, the member is automatically withdrawn from the GDC Plan, ceases to be a member, and loses the benefits and supports provided by membership.

If the member wants to join GDC again later, the member must clear the outstanding contribution upon joining.

Failure to rectify insufficient remaining pledge balance during the grace period could negatively affect credit score because the platform is entitled to engage a third party to collect the Outstanding Contribution.

Tax treatment for member sharing

Sharing contributions from members are not to a charity and do not qualify for a tax deduction.

This information is for reference only, and members should consult their own tax advisor for professional advice.