The value your insurance company will place on your car may be substantially less than the amount you owe.
In the event that your vehicle is stolen, accidentally damaged beyond repair, or otherwise declared an insured total loss, your insurance company pays the actual cash value of the vehicle at the time of loss -- not what the vehicle is really worth to you!
You remain liable for the payment of the difference between your insurance company's settlement and the balance of your loan.
This deficiency, added to the amount of your deductible, and other expenses, can easily be thousands of dollars -- money that comes out of your pocket!
GAP protects you from substantial loss:
- Low cost protection with a 60-day free look
- Protection is provided for the term of the loan (up to 84 months)
- Covers primary insurance deductible up to $1,000 (not available in all states - consult your financial institution representative)
- No model, mileage or year restrictions
- Eliminates the out-of-pocket expense for the remaining loan balance after loss settlement
- Helps the borrower avoid financial hardship and afford a replacement vehicle
- Prevents deficiency balance from being added to new loan
- Helps protect the borrower's credit rating
- Provides additional $1,000 toward financing of a replacement vehicle if financed with PenFed
Be sure to ask for GAP Protection when you apply for your vehicle loan online.
Still have questions? Click here for our FAQ.
Click here to get a free, no-obligation quote for peace of mind with your new car.