Guaranteed Asset Protection Insurance: Protect Your Vehicle Investment
When you finance a vehicle, your auto insurance covers the market value of the car if it is totaled or stolen. The problem is that vehicles depreciate fast, often faster than your loan balance decreases. If your car is declared a total loss in the first few years of ownership, your insurance payout may be thousands of dollars less than what you still owe on the loan. GAP Insurance covers that difference so you are not left paying for a car you can no longer drive.
GAP Insurance is available through People Driven Credit Union during the auto loan process. To add it to an upcoming or existing loan, call us at (248) 263-4100.
What Does GAP Stand For?
GAP stands for Guaranteed Asset Protection. It is a product specifically designed to address the gap between what your auto insurance pays and what you still owe on your loan in the event of a total loss or unrecovered theft. PDCU’s GAP coverage applies to loan balances up to 150 percent of the vehicle’s loan-to-value ratio.
Why You Might Need Guaranteed Asset Protection Insurance
Vehicles Depreciate Faster Than Loans Pay Down
Most vehicles lose 20 to 30 percent of their value in the first year alone. If you financed a significant portion of the purchase price with a low-down payment and a longer loan term, your loan balance may exceed your vehicle’s market value for several years. GAP Insurance is designed specifically for this window.
Total Loss and Theft Coverage
If your vehicle is declared a total loss after an accident or goes unrecovered after theft, your standard auto insurance policy pays only the current market value. GAP covers the remaining loan balance, so you do not walk away from the situation still owing money on a vehicle you no longer have.
Deductible Assistance
If a gap still exists after your insurance company’s payout, Guaranteed Asset Protection may cover up to $1,000 of your deductible. That reduces out-of-pocket cost at a moment when most people are already dealing with significant stress.
Added Member Benefits
PDCU’s GAP product includes additional benefits beyond the core coverage. You receive a $1,000 credit toward the next vehicle you finance through People Driven Credit Union. You also receive unlimited auto deductible claims for up to five years, with up to $500 per claim for any vehicle you own and insure during that period.
How Much Does Guaranteed Asset Protection Insurance Cost?
GAP Insurance is available for a one-time fee of $575. You can roll this amount into your auto loan or pay it upfront in cash at the time of your loan closing. Either way the coverage applies immediately upon funding.
How to Add Guaranteed Asset Protection Insurance to Your Loan
GAP Insurance is offered during the auto loan process for new loans. If you have an existing PDCU auto loan and want to add GAP coverage, call us at (248) 263-4100 and our team will walk you through the options and help you determine whether it makes sense for your situation.
Own the Road for 4.74%¹ APR*
Same low rate whether you’re buying new, used, or refinancing.
Drive off with payments as low as $18.75 per $1,000 borrowed†
*APR = Annual Percentage Rate. Rate available for qualified borrowers financing new or used cars, trucks, and SUVs, or refinancing an auto loan from another lender.
Loan terms up to 72 months. All loans subject to credit approval and membership eligibility.
†Example payment: $18.75 per $1,000 borrowed at 4.74% APR for 60 months.
Loans must close within 30 days of application. People Driven Credit Union is an equal opportunity lender.
Protect Your Loan. Protect Your Next Vehicle.
GAP Insurance is one piece of a complete auto financing package from PDCU. Here are three more ways to make sure your vehicle purchase is covered from every angle.
Apply for a PDCU Auto Loan
Competitive rates, flexible terms, an AutoPay discount of 0.25%, and the option to add GAP Insurance at closing. Apply online in minutes for new or used vehicles. All loans subject to credit approval and membership eligibility.
Explore TruStage Auto Insurance
PDCU members have access to TruStage auto insurance through Liberty Mutual with a built-in member discount. Pairing your PDCU auto loan with a competitive insurance policy gives you complete coverage from day one.
Talk to a PDCU Loan Specialist
Not sure whether GAP Insurance makes sense for your loan situation? Call us at 248-263-4100 during business hours and a PDCU loan specialist will walk you through whether the coverage fits your vehicle, loan amount, and down payment.
GAP Insurance is available for a one-time fee of $575 and may be rolled into your auto loan or paid upfront. Coverage applies to loan balances up to 150% LTV. GAP Insurance is not a substitute for required auto insurance. TruStage insurance products are offered through CUNA Mutual Group and underwritten by Liberty Mutual. Insurance products are not deposits, not NCUA insured, not obligations of or guaranteed by the credit union. All auto loans subject to credit approval and membership eligibility. Federally insured by the NCUA. NMLS #776727. Guaranteed Asset Protection
