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. 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.
- 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.