PEFCU is now offering GAP (Guaranteed Asset Protection) for your vehicle. In the event of a major accident or if your vehicle is stolen there is a chance that your loan or lease balance could be higher than the value of your vehicle, and we all know that most insurance policies will only replace the value of the vehicle. That is where GAP can help.
GAP covers the difference between your primary carrier's insurance settlement and the amount of your loan or lease, less delinquent payments, refundable service warranty contracts and other insurance related charges. It essentially covers the "gap" between the vehicle's value and the amount your still owe. Included in this difference is your insurance deductible, which is limited to $1,000*.
Here's how it could help you:
Original purchase price $25,000
Loan balance after one year $21,000
Vehicle's current value as determined by your insurance company $16,000
GAP pays the difference (Including your deductible) $5,000
Total GAP Benefit... $5,000
This great protection offered on Private Passenger Vehicles (up to $100,000) is currently provided to you for $200 (a $450 value)! For more information please call your nearest PEFCU Loan Department today.