GAP Coverage

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.

Guaranteed Asset Protection (GAP) Coverage may help cover the difference between what you owe on your vehicle and its current worth if it’s declared a total loss after an accident or theft. 

With GAP Coverage, any difference in the amount of your primary insurance settlement and remaining loan balance would be 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 110%
  • Maximum loan term of 72 months
  • Maximum claim benefit of $50,000

Any new or newly refinanced auto loan with LGFCU is eligible for GAP Coverage, which can be used for new or used cars, light trucks, vans and SUVs. LGFCU’s GAP Coverage also comes with a 90-day “free look” period, where coverage may be cancelled for a full refund and applied to the remaining loan balance.

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. 

Next Steps

Choose a way to request GAP Coverage.