Fox Answers: Do I need GAP insurance for my auto loan?

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12.21.2021 Written by Fox Communities

The experts at Fox Communities Credit Union explain GAP insurance, what it is, and whether you need it
Picture this: it’s a warm summer day and you’re about to drive off the lot in a brand new car. You’ve got the windows down, the radio on, and you’re ready for the open road. But wait – did you get GAP insurance? Do you need GAP insurance? Can GAP insurance help you? What is GAP insurance? Let’s find out.

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WHAT IS GAP INSURANCE?
Voluntary Guaranteed Asset Protection (GAP) is a loan deficiency protection designed to reduce and/or eliminate your unpaid net loan balance in the event your vehicle is stolen or damaged beyond repair. In the event of a total loss to your vehicle, GAP will waive the difference between the actual cash value of your vehicle, as determined by your primary insurance carrier, and the payoff of your loan, less any exclusions that may apply.

IS GAP INSURANCE RIGHT FOR YOU?
Often, the answer to this question is up to you. GAP insurance can provide a much-needed safety net if the worst comes to pass. However, it’s also something you may never have to use. If you’re even a little unsure about whether to purchase GAP insurance, then you’ll want to reach out to one of our auto lenders here at Fox. They’ll be able to walk you through all your options so that you make the choice that’s best for you and your situation.

CAN FOX HELP WITH AUTO LOANS?
You bet we can. In fact, we offer a wide range of auto loan options, including an auto buying service and our special Reliable Rides auto loan program. You can even apply for an auto loan right here on our site in three easy steps.

And, as always, you can contact our friendly Fox team with any questions.

*Guaranteed Asset Protection (GAP) is optional and will not affect your application for credit or the terms of any credit agreement you have with us. Certain eligibility requirements, conditions, and exclusions may apply. This is not a substitute for collision or property damage, and does not provide general liability, nor does it fulfill the requirements of state laws requiring motorist insurance. You will receive the contract before you are required to pay for GAP. You should carefully read the contract for a full explanation of the terms and conditions.