Penfed Auto Insurance: What You Need To Know

Pentagon Federal Credit Union (PenFed) offers auto insurance to its members, with discounts of up to 20% and exclusive deals on rentals. They also offer Guaranteed Asset Protection (GAP) coverage, which bridges the gap between the depreciated value of a vehicle and the loan balance, in case the vehicle is stolen or totaled. PenFed also provides an Auto Deductible Reimbursement (ADR) benefit, which reimburses the deductible for any covered loss on car insurance. In addition to insurance, PenFed offers auto loans with competitive rates and easy pre-approval.

PenFed's Guaranteed Asset Protection (GAP)

For example, if you bought a new car for $30,000 but still owe $25,000 on your loan when you're involved in an accident, your insurance company will declare your vehicle a total loss and agree to pay you the car's depreciated value, which may be less than the remaining loan amount. GAP coverage would waive the difference so you wouldn't be left with a car loan you can't afford.

PenFed's GAP coverage includes:

• Competitive pricing at $449 or $525
• Coverage for loans up to $100,000 for new or used vehicles
• An additional $1,000 toward the purchase price of a replacement vehicle if financed through PenFed
• Auto Deductible Reimbursement (ADR) at no extra charge

You can easily add GAP coverage to your PenFed loan when you finance or refinance your purchase. It is important to note that GAP coverage is not required when you buy a car but is often required when you lease one.

PenFed's Vehicle Protection Plan

The Vehicle Protection Plan is just one of several auto-related services offered by PenFed. They also provide auto loans, with great rates on new and used cars and trucks, as well as auto refinancing. PenFed's auto loans offer up to 125% financing, with loan amounts up to $150K. Pre-approval can be obtained in minutes, and it won't affect your credit score.

In addition to the Vehicle Protection Plan, PenFed also offers Guaranteed Asset Protection (GAP) Coverage. This covers the difference between the value of your vehicle and the amount you owe on your loan if your car is totaled or stolen. GAP coverage is especially useful if your loan amount is higher than the depreciated value of your car. With GAP coverage, you won't be stuck owing money on a car that is no longer usable.

PenFed also provides Auto Deductible Reimbursement (ADR) with their GAP coverage. This reimburses your deductible up to $500 for any covered loss on your car insurance policy. With ADR, you can stay in control of your finances after an accident and use the benefit for any covered repair or replacement.

Overall, PenFed's Vehicle Protection Plan, along with their other auto-related services, provides comprehensive coverage and protection for car owners. With these services, PenFed helps to ensure that car owners are prepared for unexpected expenses and gives them peace of mind on the road.

PenFed Debt Protection

In the case of death, the remaining loan balance is cancelled as of the date of death, covering up to $70,000 in total. The disability benefit supplements your employer's disability program, providing up to 12 payments per occurrence, covering up to $1,000 per month and $24,000 in total. For involuntary unemployment, PenFed Debt Protection offers the cancellation of up to 6 payments per occurrence, covering up to $1,000 per month and $15,000 in total.

The cost of the program is a small additional amount to your monthly payment, ranging from $0.88 to $2.10 per month, per $1,000 of the loan balance. You can add the benefit during the application process or within the six-month eligibility period after obtaining the loan.

PenFed also offers other financial protection services, such as Guaranteed Asset Protection (GAP) for your vehicle and Debt Consolidation Loans to help simplify your debt with a single fixed-rate payment.

PenFed Auto Loan pre-approval

PenFed offers auto insurance as part of its Auto Loan pre-approval. This includes Guaranteed Asset Protection (GAP) and Auto Deductible Reimbursement (ADR). GAP covers the difference between the depreciated value of your vehicle and your loan balance in the event of theft or total loss. ADR reimburses your deductible up to $500 for any covered loss on your car insurance policy.

Auto Loan pre-approval from PenFed can be obtained in minutes and helps you understand how much you can borrow and at what interest rate. This allows you to focus on finding the right vehicle without worrying about financing. You can apply for pre-approval without affecting your credit score, and anyone can join.

PenFed offers great rates on new and used cars and trucks, with loan amounts up to $150,000 and financing of up to 125%. The APR and monthly payments are designed to be accessible, with low-interest rates and quick disbursement of funds.

In addition to auto loans, PenFed offers a range of member discounts, including savings on auto insurance, home insurance, and other services. With PenFed, you can protect your vehicle and finances with confidence.

PenFed Car Insurance deductibles

PenFed does offer auto insurance. Members can save up to 20% on auto insurance and receive exclusive discounts.

PenFed offers Guaranteed Asset Protection (GAP) Coverage for your vehicle. This covers the difference between the insurance payout and the loan balance if your car is damaged or stolen. For example, if your vehicle's actual cash value is $20,000, and your loan amount is $25,000, the insurance payout will be $19,500 (ACV less deductible). This would leave a loan balance of $5,500, which GAP coverage would waive so that you are not left with an unaffordable car loan.

PenFed also offers Auto Deductible Reimbursement (ADR) as part of its GAP policy. This reimburses your deductible up to $500 for any covered loss on your car insurance policy. This benefit can be used for any covered repair or replacement, from minor to major incidents. ADR is included with GAP coverage at no extra cost and is effective for two years from the date of enrollment.

The PenFed Automobile Deductible Reimbursement program covers up to $500, twice a year. To be eligible for reimbursement, you must report a completed qualified purchase within 45 days of the purchase date and file a claim on the purchased vehicle within 365 days of registering for the program. This service is not available in New Hampshire or New York.

Frequently asked questions