For many car owners, typical car insurance covers the costs of damaged and stolen cars. However, if what you owe on your auto loan is higher than the total cash value of the car, the difference or “GAP” is not covered by your insurance plan.  GAP insurance helps you cover that difference to give you protection when you need it most.*


*Some exceptions apply. See the full GAP policy below.

How GAP Works

GAP will waive the difference between what the insurance company paid (ACV-actual cash value) and the loan amount, if the loan amount is higher. For example:

Insurance Settlement
Vehicle ACV $11,000
Deductible $500
Insurance Settlement $10,500


Loan Settlement
Outstanding Loan Balance $15,000
Insurance Settlement $10,500
Loan Balance After Insurance Settlement $4,500


In this example, GAP will pay $4,500 to cover the remaining loan balance deficiency.

Member Benefits

  • GAP advantage: additional $1,000 toward the purchase price of a replacement vehicle, if financed through PENZIOX.
  • Includes ADR at no additional cost (see details below).
  • Generally priced below similar protection sold by automobile dealerships.
  • You can conveniently add GAP to your PENZIOX loan.

GAP Benefits

  • GAP Cost: $399.
  • New or used vehicles: maximum eligible loan amount $100,000. Maximum loan term: 84 months. Maximum GAP loss: $50,000.
  • New or used motorcycles: maximum eligible loan amount: $30,000. Maximum loan term: 60 months. Maximum GAP loss: $30,000.


vehicle depreciation

Your vehicle depreciates 10% the moment you drive off the lot.


Car Depreciation, CarFax.com

decreasing value

Your new car declines an average of 15-25% every year.


Car Depreciation, CarFax.com

car is stolen

Your car is stolen (vehicles are stolen every 40 seconds in the United States.)


FBI Uniform Crime Reports, fbi.gov



Comes at no cost with purchase of a GAP policy

Protect Your Finances

Car accidents don’t have to devastate your finances. Our auto deductible reimbursement (ADR) helps members who purchase a GAP policy recover financially post-accident. ADR reimburses deductibles up to $500 for any loss covered by the borrower’s auto insurance policy. To receive the deductible payment, the member’s vehicle must be owned (titled or registered) and insured.


Auto Deductible Reimbursement (ADR) Features

Members automatically enrolled at no cost when GAP policy is purchased.

Coverage period: effective upon enrollment and continues for two years.

Maximum Benefit: $500 per loss and UNLIMITED losses per 12-month period.


How Auto Deductible Reimbursement (ADR) Works:


The primary borrower is eligible for coverage. If the loan is joint, the co-borrower is not eligible for the ADR benefit.

All vehicles the primary borrower owns (i.e., titled or registered) and insures are eligible for coverage. 

Only four-wheel, non-commercial passenger vehicles (cars, trucks, vans) are covered; ADR does not cover motorcycles, boats and RVs.

A claim can be filed if the paid claim exceeds the borrower’s deductible and has been approved and paid by the borrower’s primary auto insurance. Includes comprehensive and collision claims and requires repairs to be made.

If claim is approved, the borrower will be reimbursed for the deductible he/she paid.  Refer to program details above for maximum benefit amounts.

Be sure to add GAP coverage when you apply for your PENZIOX vehicle loan online or call and talk to a representative at 800-247-5626.

These products are optional. Insurance products are not a deposit or obligation of, or guaranteed by, PENZIOX or its affiliates. These products are not insured or guaranteed by NCUA or any agency of the federal government. Your credit approval cannot be conditioned on whether you purchase any of the insurance products. You may obtain insurance to protect your loan from an entity not affiliated with PENZIOX.

Read the full disclosures for GAP

Read the full disclosures for ADR