Routing & Transit Number: 283079227

Guaranteed Auto Protection (GAP)

In the event your vehicle is deemed a total loss due to an accident or theft, your auto insurance policy will usually only cover the actual cash value or market value of your vehicle less a deductible. This settlement could be significantly less than the amount you owe to your lender or leasing company. The final result is a financial GAP where you must make up the difference. That could mean thousands of dollars out of your pocket.


Guaranteed Auto Protection protects individuals who finance a new or used vehicle from the financial GAP.


In the current market, during the first few years that you own your vehicle, your loan/lease balance can be higher than the actual value of your vehicle as a result of depreciation. As your vehicle's value declines, your loan/lease balance may decline more slowly resulting in a financial gap. If your vehicle were stolen or totaled in an accident, you would be liable to pay the difference between your insurance settlement and your outstanding loan/lease balance.


Guaranteed Auto Protection covers the difference between the actual cash value of your vehicle and the loan/lease balance, less delinquent payments, late charges, refundable service warranty contracts and other insurance related charges.


If you are thinking about purchasing a new vehicle, you can ask a loan representative about adding GAP Insurance coverage at closing. For more information or questions regarding GAP Insurance, you can also contact our Loan Department at (800) 292-2905 or (502) 368-5858 or, email




© 2013 L&N Federal Credit Union | 9265 Smyrna Pkwy, Louisville, KY 40229 | 502.368.5858 | 800.292.2905
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