GUARANTEED ASSET PROTECTION (GAP)
GAP provides protection to you if your vehicle is totaled or stolen and never recovered,
and there is a difference in your remaining loan balance and what the insurance company
will pay; GAP will cover the loss.*
*Some exceptions apply. See the full GAP policy below.
- GAP Advantage: Additional $1,000 toward the purchase price of
a replacement vehicle if financed through PenFed
- Includes ADR at no additional cost (see details below)
- Our GAP is generally priced below similar protection sold by
- You can conveniently add GAP to your PenFed loan
- GAP Cost: $399
- New or used vehicles: Maximum eligible loan amount $100,000
Maximum loan term 84 months. Maximum GAP loss $50,000
- New or used motorcycles: Maximum eligible loan amount $30,000
Maximum loan term 60 months. Maximum GAP loss $30,000
HOW GAP WORKS
GAP will waive the difference between what the insurance company paid
(ACV-actual cash value) and the loan amount, if the loan amount is higher – for example:
Auto Deductible Reimbursement (ADR) is a complimentary benefit provided on behalf of PenFed to our members who purchase a GAP policy.
ADR reimburses the deductible up to $500 for any loss covered by the borrower’s auto insurance policy for ALL passenger vehicles owned (i.e. titled or registered) AND insured (i.e. Named Insured) by the enrolled member.
- Cost: No fee to the member, automatically enrolled when GAP policy
- Coverage Period: Effective upon enrollment and continues for 2 years
- Maximum Benefit: $500 per loss and limit of 2 losses per 12-month period
HOW ADR WORKS
- The primary borrower is eligible for coverage.
If the loan is joint, the co-borrower is not eligible for the ADR benefit
- All vehicles the primary borrower owns (i.e. titled or registered) AND insures (i.e. Named Insured) are eligible for coverage.
Only passenger vehicles (cars, trucks, vans, non-commercial, four wheel autos only) are covered, does not cover vehicles such as motorcycles, boats and RVs.
- A claim can be filed if the paid claim exceeds the borrower’s deductible and has been approved and paid by borrower’s primary auto insurance. Includes comprehensive and collision claims and requires repairs to be made.
- If claim is approved, the borrower will be reimbursed for the deductible he/she paid.Refer to program details above for maximum benefit amounts.
Be sure to add GAP coverage when you apply for your PenFed vehicle loan online or call and talk to a representative at 800-247-5626.
Read the full disclosures for GAP
Read the full disclosures for ADR