Guaranteed Asset Protection (GAP) Frequently Asked Questions
What is GAP?
GAP is a loan protection product that covers the difference between the outstanding loan amount and the actual cash value when an auto is declared a total loss. If your vehicle is totaled in an accident or stolen and not recovered, the insurance settlement is based on the actual cash value, not the outstanding loan balance. This could create a loan "gap"–you owe on the loan after the insurance company pays its portion. When you add GAP to the loan, that deficiency is covered, including up to $1,000 of the borrower's deductible.
How much does it cost?
Navy Federal charges a flat enrollment fee of $249 for new vehicles and $329 for used vehicles, which can be financed as part of your loan. Many car dealers charge $400 to $700 for the same protection. Coverage includes up to $1,000 of your deductible.
Who can purchase GAP?
GAP is available to all Navy Federal members on qualified vehicle loans during the application process. You can apply for your loan online, by phone or in person. It is also available on existing Navy Federal auto loans. Please call us to add GAP to your existing loan.
How do I purchase GAP?
It will be offered to you during the loan application process or you can call Navy Federal directly.
Is GAP available for refinanced vehicle loans?
Yes, as long as the vehicle qualifies.
What is a qualifying vehicle?
GAP only covers up to 125% of the MSRP for new vehicles or 125% of the Actual Cash Value for used vehicles. GAP is not available on consolidation loans.
Does my loan have to be financed through Navy Federal?
Yes. However, coverage is available for new and existing Navy Federal loans.
How do I submit a claim?
You can submit a claim at your local branch, through the mail or by calling Navy Federal at 1-888-842-6328.
What is the processing time for a claim?
Usually within five days of receiving all the documentation from the member.
What is the maximum amount that can be claimed under GAP?
$50,000 is the maximum claim amount.
Can I cancel if I change my mind after I purchase GAP?
A full refund will be given if you cancel within 60 days of enrollment.
Can I transfer the coverage to another vehicle?
No, GAP is non-transferable.
On average, how much will my monthly payment increase if I purchase GAP?
For most vehicles, your monthly payment will only increase by a few dollars. For instance, on a $24,500 new vehicle loan for 60 months at 4.5% APR, your monthly payment would be $457 without GAP; $460 with GAP. For a used vehicle loan of $24,500 for 60 months at 6.0% APR, your monthly payment would be $474 without GAP; $480 with GAP.*
For more information, please call anytime:
1-888-842-6328, international numbers.
*Calculations are estimates. Actual payment amount may vary based on booking date of loan and applicant's first due date. |
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