A new car starts to lose value as soon as it’s driven off the lot, so quickly that if it’s in an accident or stolen, you may owe more than the car is worth. GAP Coverage can help.
LGFCU offers Guaranteed Asset Protection (GAP) Coverage when you take out a new or newly refinanced auto loan on a new or used vehicle financed through the Credit Union. It can be used for cars, light trucks, vans and SUVs, and is not available for classic vehicles, vehicles that are 20 years old or older, previously salvaged vehicles or vehicles used for ride-sharing.
When financing your vehicle with LGFCU, you can purchase GAP Coverage for a one-time, flat fee of $275, while consumers who opt for dealer financing can expect to pay almost $900 for a similar plan with the same benefits.
GAP coverage may help cover the difference, the “gap,” between the insurance settlement amount and the outstanding loan balance if your vehicle 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. With GAP Coverage, 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
Maximum loan to value of 125% for terms up to 96 months
Maximum claim benefit of $50,000
LGFCU’s GAP Coverage comes with a 90-day “free look” period, where coverage may be cancelled for a full refund and applied to the remaining loan balance. A copy of the GAP agreement can be provided upon request for additional information.
Choose a way to request GAP Coverage.
- Call 888.732.8562
- Visit your local branch