If all goes well, the car or truck you buy will be around for years. Unfortunately, things don’t always go well. If a vehicle is stolen, accidentally damaged beyond repair or otherwise declared an insured total loss, auto insurance will cover only the replacement value. However, you remain liable for payment of the difference between the insurance settlement and the loan balance. This deficiency can easily amount to thousands of dollars.
Gap Protection is an affordable way to fill the gap. For just a few dollars per month, members can protect themselves against this kind of unexpected expense.
What is GAP Insurance?
GAP insurance is an insurance policy that insures Penn State Federal members for the amount still due to payoff their loan if the insurance company declares the car a total loss and pays less than the payoff of the loan due to Penn State Federal.
The policy will pay up to $50,000 of the amount due and will reimburse the insurance deductible up to $1000. As an added benefit, members who finance their next vehicle with Penn State Federal can advance $1,000 toward the purchase of that vehicle!
Any other benefits?
Members achieve peace of mind. No financial burden from vehicle total loss. GAP insurance can also help to protect Penn State Federal member's credit rating. Because the member will have a down payment for their next vehicle if they finance it with Penn State Federal. The member can finance the GAP insurance premium into their car loan.
How much does GAP Insurance cost?
The regular GAP insurance premium is $350. GAP for vehicles used for commercial purposes is also available. This cost can be financed into a member's loan.
To thank you for purchasing GAP, we will provide you with the Auto Advantage Program, which includes the Auto Deductible Reimbursement (ADR) benefit and other valuable services*. Ask your loan representative to learn more.
*Auto Deductible Reimbursement (ADR) is one benefit of the Auto Advantage Program. Other benefits include Personal ID Resolution Consulting and Warranty Registration.