Guaranteed Asset Protection (GAP)
Add GAP today for only $599.
Some exceptions apply, please review the full policy below.
What is GAP?
Ever worry your auto loan could be bigger than your damaged vehicle’s worth? GAP has you covered.
How GAP works
- Standard auto insurance reimburses you for a car’s current value, not what you still owe on your loan.
- The gap: If your loan amount is higher than the car’s current value, you’re on the hook for the difference.
- GAP Coverage bridges the gap: It waives the difference between your car's current value and your loan balance, so you won't be stuck owing money on a totaled car.¹
Example coverage
- Vehicle’s Actual Cash Value (ACV): $20,000
- Loan amount: $25,000
- Deductible: $500
- Insurance payout: $19,500 (ACV less deductible)
- Loan balance after insurance payout: $5,500
GAP coverage would waive the remaining $5,500 so you wouldn't be left with a car loan you can't afford.
Benefits
- Peace of mind: GAP covers the difference between your vehicle's depreciated value and your loan balance if it's totaled or stolen.
- Extra cushion: Get an additional $1,000 towards a replacement vehicle purchase if financed through PenFed.
- Affordable protection: Priced competitively compared to dealership options.
- Convenient enrollment: Easily add GAP to your PenFed loan.
What is ADR?
Auto Deductible Reimbursement (ADR):
Accidents happen, but your finances don't have to take the hit.
- Get back on track after an accident: ADR reimburses your deductible up to $500 for any covered loss on your car insurance policy.
- Stay in control: Use your ADR benefit for any covered repair or replacement, from fender benders to major collisions.
- Simple and seamless: Just purchase a GAP policy with PenFed, and ADR comes included. No extra fees or paperwork needed. Coverage effective upon enrollment and continues for 2 years.
Why add GAP with ADR?
Disclosure
¹GAP is optional and is subject to limitations and exclusions, such as a Loan-to-Value (LTV) maximum of 125% which may limit the benefit you receive.
²These products are optional. Insurance products are not a deposit or obligation of, or guaranteed by, PenFed or its affiliates. These products are not insured or guaranteed by NCUA or any agency of the federal government. Your credit approval cannot be conditioned on whether you purchase any of the insurance products. You may obtain insurance to protect your loan from an entity not affiliated with PenFed.
Read the full disclosures for GAP (PDF)
Read the full disclosures for ADR (PDF)