GAP Coverage

An accident, natural disaster or theft may cause you to owe more than your car is worth. GAP Coverage can help.

Bridge the gap for your auto investment

Guaranteed Asset Protection (GAP) Coverage may help cover the difference between the settlement cash value of your car and the amount you owe on the auto loan.

LGFCU offers this optional, add-on coverage when you first finance or refinance a New Auto Loan or Used Auto Loan with us. It’s available for cars, light trucks, vans and SUVs, but not for previously salvaged vehicles or vehicles used for ride-sharing.

How much does GAP Coverage cost?

When financing your vehicle with LGFCU, you can purchase GAP Coverage for a one-time, flat fee of $325. Consumers who opt for dealer financing can expect to pay almost $900 for a similar plan with the same benefits. You can opt for this coverage even when you’re using our Car Buying Service.

When should I use this coverage?

You can use this coverage when your car is involved in a total loss claim, as determined by your auto insurance provider, due to an “at fault” or “not at fault” accident, theft or flood.  

GAP Coverage may not always protect the entire deficiency; the difference is covered within limitations:

  • Maximum market value of the vehicle is $100,000, based on Manufacturers Suggested Retail Price (MSRP) or National Automobile Dealers Association (NADA) Average Retail Value.
  • Existing loans are not eligible unless refinanced.
  • The maximum loan to value is 110% for terms up to 96 months.
  • Maximum claim benefit is $50,000.
  • During the 90-day “free look” period, coverage may be canceled for a full refund and applied to the remaining loan balance.

You may request a copy of the GAP agreement for more details.

Next Steps

Choose a way to request GAP Coverage.