GUARANTEED ASSET PROTECTION (GAP) & EXTENDED WARRANTY COVERAGE
Protect Yourself from Unplanned Costs
Guaranteed Asset Protection (GAP) and Vehicle Service Warranties are voluntary programs designed to reduce financial stress when surprises happen. GAP helps cover the difference between your loan balance and your insurance settlement if your vehicle is ever deemed a total loss. A Vehicle Service Warranty adds another layer of protection by covering certain mechanical repairs that your insurance doesn’t, helping you avoid costly out‑of‑pocket expenses as your car ages.
Why GAP Coverage Matters
Understanding how your vehicle’s value declines over time is important — cars depreciate quickly, often faster than your loan balance decreases. This can leave you “upside down,” owing more than your vehicle is worth.
Guaranteed Asset Protection (GAP) is a voluntary program that helps protect you from this financial risk. If your vehicle is ever declared a total loss, GAP covers the difference between your remaining loan balance and the amount your insurance company pays. With GAP, that deficiency balance is waived, so you’re not stuck paying for a car you no longer have.
But the benefits don’t stop there:
- $1,000 Toward Your Next Vehicle
- If your car is totaled and you choose to finance your replacement vehicle with Penlanco FCU, you’ll receive an additional $1,000 credit applied to your new loan.
- Complimentary Auto Deductible Reimbursement (ADR)
Included with GAP Coverage, Auto Deductible Reimbursement (ADR)
With the purchase of GAP, you receive Auto Deductible Reimbursement for 36 months — at no additional cost. ADR reimburses up to $500 of your insurance deductible per loss on any vehicle you own, not just the one covered by GAP.
ADR is underwritten by an “A” Excellent AM Best rated carrier and reimburses you up to $500 of your insurance deductible per loss on any vehicle you own.
Sample Scenario
You buy a car. The loan balance after one year is $15,000. The market value is $11,000. Your insurance deductible is $500.
You total the car, and your insurance company pays $10,500.
That leaves a difference of $4,500 — $4,500 you would have to pay for a car that you no longer have.
With GAP, that $4,500 is paid, PLUS you receive the $1,000 benefit applied toward financing your next vehicle with Penlanco FCU.