Bridge the gap for your auto investment
Guaranteed Asset Protection (GAP) Coverage may help cover the difference between the insurance settlement on your car and the amount you owe on the auto loan.
LGFCU offers this optional, add-on coverage when you first finance a New Auto Loan or refinance a Used Auto Loan with us. It’s available for cars, light trucks, vans and SUVs, but not for previously salvaged or flood vehicles, vehicles over 20 years old, 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 $675.
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 J.D. Power 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.