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 FirstPencu.
- Affordable protection: Priced competitively compared to dealership options.
- Convenient enrollment: Easily add GAP to your FirstPencu loan.
What is GAP?
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?
Your vehicle depreciates 10% the moment you drive off the lot.
SOURCE:
Car Depreciation, CarFax.com
Your new car declines an average of 15-25% every year.
SOURCE:
Car Depreciation, CarFax.com
Your car is stolen (vehicles are stolen every 40 seconds in the United States.)
SOURCE:
FBI Uniform Crime Reports
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This credit union is federally insured by the National Credit Union Administration. Rates are current as of April 2025 unless otherwise noted and are subject to change.
APY = Annual Percentage Yield
APR = Annual Percentage Rate