Guaranteed Asset Protection

How GAP WorksTo better serve our members, Beaver Valley offers Guaranteed Asset Protection (GAP) coverage on most vehicle loans. GAP represents the difference between your vehicle loan balance and your insurance company's settlement in the event of a total loss or theft of your vehicle.

Most borrowers are totally unaware of GAP risk unless they have learned the hard way. Beaver Valley doesn't want that to happen to any of their members. Most borrowers believe that if their financed vehicle is totaled or stolen, their insurance carrier will pay of their loan balance. With 100% financing being the norm today, the chance of that happening is almost nil. Insurance companies insure vehicles for actual cash value (current market value) less the insured's deductible. This can leave an unsuspecting borrower with a deficiency balance of several thousand dollars or more.

Without GAP protection, a borrower could find himself in quite a predicament……needing a replacement vehicle while a significant balance remains on the totaled vehicle. Beaver Valley is offering GAP because we would rather serve our members well at the outset rather than try to offer consolation when it is too late.

The cost of GAP can be financed onto your vehicle loan. GAP will not only pay off the remaining deficiency balance, it will also reimburse up to $1000 of the borrower's insurance deductible. In addition, our GAP protection includes up to $1000 toward your down payment of a replacement vehicle (where allowed by law and when financed by our credit union).

For more information on our GAP program, please call either office.

If you have already financed a vehicle with BVFCU, you may take advantage of adding this protection to your existing vehicle loan within 60 days of the loan date.