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Home > GAP – What Is It and What Can It Do for You?
GAP – What Is It and What Can It Do for You?5/2/2022

couple looking at car

Owning a new car is exciting — new features, that new car smell, and the freedom of being able to drive somewhere when you need to — this is, unless your new car gets stolen or involved in a serious collision. In situations like the latter, you might expect your car insurance policy to cover the remaining costs of your vehicle which is damaged beyond repair or was never recovered. Unfortunately, however, even the best insurance plans may not cover the rest of your outstanding loan, creating what is known as a negative equity situation or a loan "gap" on the money you owe. With Guaranteed Asset Protection (GAP), you can protect your investment and help cover the costs that your car insurance can't.

What is GAP?

Guaranteed Asset Protection, or GAP, is a voluntary, non-insurance program offered as protection on new or used vehicles. If your car is stolen and not recovered or totaled in an accident, you should receive a settlement from your insurance company based on the market value of the vehicle. Depending on where you live, the established market value of your vehicle could be less than the actual balance you owe. This could mean that the amount you receive from your insurance company may not cover the rest of your loan. If there's still money owed, GAP may help pay:

  • The outstanding loan amount
    • Not including delinquent payments, late charges, refundable service warranty contracts, and other insurance related charges
  • A portion of your insurance deductible
    • Up to $1,000 with Members First Credit Union of Florida

What isn't covered by GAP?

GAP can be a lifesaver, but it doesn't cover:

  • An extended warranty added to your car loan
  • Mechanical repairs or maintenance for your vehicle

When is GAP useful and is it worth it?

The reality is the value of your car depreciates the second you drive it off the lot. Unless you've made a large down payment, you'll likely owe more on your loan than your car is worth, which can cause problems if your car is stolen and never recovered or totaled. GAP is also useful if:

  • You are leasing a car
  • The make and model of your car depreciates quickly
  • You drive more than 15,000 miles a year (accelerating your car's depreciation)

If you're purchasing a car with little or no money down, leasing, or you expect your car's value to depreciate quickly, you could benefit from GAP should anything happen to your vehicle.

How can you purchase GAP?

GAP can be purchased from car dealerships, auto insurance companies, and at some financial institutions, like your local credit union. The cost can vary, depending on your car's value and whether or not it's a lease. The cost of getting GAP through your credit union is generally half the cost of purchasing GAP from dealerships — potentially saving you hundreds up front.


We'll Lend a Helping Hand.

Members First Credit Union of Florida offers the following GAP Protection Benefits:

  • Protection for the term of your loan up to 84 months
  • Coverage for vehicles valued up to $100,000 at time of purchase
  • Payment benefits up to $50,000
  • Coverage for auto insurance deductibles up to $1,000
  • Benefits for new or used vehicles, including cars, light trucks, motorcycles, boats, RVs, and some other motorized vehicles
  • Bonus: Free Auto Deductible (ADR)
    • Pays/Reimburses up to $500/per loss (unlimited losses per year) when a loss is filed and paid by the Auto Insurance Company for the Covered Auto.

For more details or to add this important protection product to your loan, call us at (850) 434-2211 and select option 2 to speak with a representative in our Loan Department, or email us.


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Rates, terms, and conditions are subject to change and may vary based on credit worthiness, qualifications, collateral age, and conditions.  The APR will be disclosed prior to an advance being made on a loan.


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Members First CU of Florida
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This Credit Union is federally-insured by the National Credit Union Administration. We do business in accordance with the Fair Housing Law and Equal Opportunity Credit Act.
Members First Credit Union of Florida is not affiliated with Members First Credit Union (Kentucky)

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