Guaranteed Asset (GAP) Protection| Municipal Credit Union

Don’t Pay for a Car You Can’t Drive Anymore.

Guaranteed Asset Protection (GAP), an optional product that provides peace of mind in the face of unforeseen events. Designed to step in where primary insurance may fall short, GAP is there to bridge the gap between the borrower's remaining loan balance and the settlement from their insurance carrier in the event of a total loss or unrecovered theft.

Access Low Fees for MCU Members.

Guaranteed Asset Protection is available to MCU members for a one-time fee of $299. This protects you from having to maintain payments toward your car if you get in an accident.

You Don’t Have to Pay Outright.

The $299 GAP fee can be included in the financing of your vehicle and spread out in a low monthly payment—so you can enjoy peace of mind for just a few extra dollars per month.

Don’t Lose Out on Protection.

MCU offers Guaranteed Asset Protection so members who drive every day or drive for a living can stay afloat after an accident. You can add this coverage to an existing auto loan for the full term of the loan.

Feel Free to Change Your Mind.

Plans change! You may expect to drive to work and suddenly be working from home every day. If you purchase Guaranteed Asset Protection, you can take up to 60 days to decide if it really fits your lifestyle.

Get a Break on Payments Post-Accident.

If you’re in an accident that totals your car, Guaranteed Asset Protection will immediately cover any payments on your vehicle loan that are up to 90 days past due at the time of loss, not including late fees you owe.

Add GAP Coverage Now.

You can call 212-693-4900 or visit your local branch to purchase Guaranteed Asset Protection, or simply add GAP to your current auto loan.

How Much Does GAP Protect?

Here's a hypothetical example to demonstrate how much you're insuring when you purchase GAP protection for a vehicle you already drive (keep in mind that this is only an example and is not being presented as terms of any actual plan).

Example: How GAP Works

Let's say your total remaining loan balance is $15,000. That's how much you still owe your creditor for the car you already drive. If you were to get in an accident, you might receive a $10,000 payout from insurance to replace your damaged car because of its depreciated value.

Even with auto insurance, your remaining balance you'd still owe to your car loan creditor would be $5,000.

$15,000 (loan balance) - $10,000 (insurance claim) = $5,000 (GAP coverage)

This is where Guaranteed Asset Protection can save you thousands. Your GAP plan would cover the remaining balance of your loan, in this pretend example, that's $5,000 you get covered.

What’s the Total Payout after a Crash?

Consider the example above. Depending on how much your car is worth, what your remaining loan balance is, and how much (if anything) your current auto insurance will cover if you get in a crash, you could save money in the long run.

Essentially, if you spend $299 on protection, you get out of paying $5,000 or more for a car you can't drive due to an accident.

Is It Worth It If I’m a Safe Driver?

In short, yes. If you drive often, for your weekday commute or for long trips, you'd end up saving money on your car loan by purchasing Guaranteed Asset Protection on your car due to the higher probability of an accident. Similarly, remember that if your car is a luxury vehicle or brand new, the depreciation could be even greater.

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That’s why we have specialized recommendations for products and services designed to help you meet your goals (both short-term and down the road), based on your changing needs and priorities.

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Membership in our community is about more than just banking. As an MCU member, you can access valuable information and resources to help you plan and reach your financial goals.

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Get Answers to Our Most Frequently Asked Questions.

Can you get GAP protection after you purchase a car?

Typically, you can purchase GAP protection at any time as long as your vehicle meets the requirements.

Can I add GAP to a loan I’ve almost paid off?

If your vehicle meets the insurer’s requirements, and you are within any required time period to purchase GAP, you can add GAP to a loan regardless of how much you have left to pay off.

Can I get GAP for a car that I lease?

Yes! GAP is ideal for leased vehicles, and some lessors even require it.

How long does my GAP last?

If GAP was purchased and covered in the finance agreement, then the insurance will be in place until either it is cancelled by the insured or the agreement is terminated.

Is Guaranteed Asset Protection considered insurance?

Guaranteed Asset Protection (GAP) s a voluntary, non-insurance product designed to waive the remaining loan balance not covered by the borrower's primary insurance carrier settlement in the event of a total loss or unrecovered theft, subject to limitations and exclusions, including but not limited to loan-to-value (LTV) maximum, delinquent payments, late charges, refundable service warranty contracts and other insurance related charges.

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Guaranteed Asset Protection (GAP)

Get Added Coverage Following a Total Loss.