Loan Protection Add-Ons
Buying a vehicle can be stressful for many reasons. You’ve done your research, test-driven numerous vehicles, and finally narrowed it down to the one you want to buy. Congrats!
As if that decision wasn’t hard enough, now let’s look at service contracts and additional insurance coverage options as you finalize your financing. Should you add those on, or decline? When buying electronics, furniture, appliances, etc., it’s easy to just say “no thank you” because the risk is small enough. But what about when purchasing a vehicle? Before you decline out of habit, let’s break down some of those options.
Credit Life and Disability Insurance
Credit Insurance is designed to provide financial protection and help ease the burden on your family during difficult times.
Credit Life Insurance, in the event of a borrower’s death, may pay off or reduce the outstanding balance of the covered loan.
If a borrower experiences a covered disability resulting from illness or injury, Credit Disability Insurance benefits may pay all or a portion of the scheduled monthly loan payments.
Credit Insurance Features and Benefits*
The policy is written at the time of the loan signing.
The insurance premium is financed with the loan.
Life Insurance protection is available up to the age of 71*.
Disability Insurance protection requires borrower to be working at least 25 hours a week*.
No medical exam is required.
The purchase of Credit Insurance is voluntary and can be cancelled at any time.
In the event of a borrower’s death or disabiliy, contact the Credit Union to learn what documentation and information may be required to support your claim, as well as how to submit it. Continue making your scheduled loan payments until a claim decision has been communicated to you.
*Refer to the policy or certificate for specific eligibility requirements, terms, conditions, limitations, exclusions and maximum benefit limits.
GAP Insurance (Guaranteed Asset Protection)
What happens if your vehicle is totaled in a collision or stolen?
Your auto insurance company may pay a settlement based on the vehicle’s value. However, if the amount you owe on your loan is greater than the vehicle’s value, you could be responsible for paying the remaining balance.
That’s where GAP Insurance can help.
Simply put, GAP Insurance is designed to help cover the difference between your vehicle’s value and the amount you still owe on your loan, subject to the terms and conditions of the coverage.
GAP Insurance Features and Benefits*
One-time cost: The GAP Insurance premium can be financed as part of your vehicle loan, making it convenient to include with your financing.
Potential cost savings: GAP Insurance may be available at a lower cost through the Credit Union than through a dealership.
Helps address early depreciation: GAP Insurance helps account for the difference created by the rapid depreciation that can occur during the early stages of vehicle ownership.
Reduces potential out-of-pocket expenses: If your vehicle is totaled or stolen, GAP Insurance may help pay down the remaining loan balance that your primary auto insurance does not cover, subject to the terms and conditions of the coverage.
Peace of mind: GAP Insurance can help reduce the potential financial strain that may follow a theft or serious accident by helping address a remaining loan balance.
*Refer to the policy or certificate for specific eligibility requirements, terms, conditions, limitations, exclusions and maximum benefit limits.
Service Contract (Mechanical Breakdown Protection)
Your vehicle is more than just an investment—it’s an essential part of your everyday life. With a service contract, you can have greater peace of mind knowing that covered repairs and unexpected expenses may be easier to manage, helping protect your vehicle and your budget when you need it most.
Like an insurance policy, service contracts offer different coverage levels and deductible options, giving you the flexibility to choose protection that fits your needs and budget. Before making a decision, consider all of your options. Does your vehicle already come with a manufacturer’s warranty? If not, would you be prepared to pay out-of-pocket if a major mechanical or electrical component fails? Repairs involving the engine, transmission, or electrical system can be costly. A service contract may help protect you from unexpected repair expenses and provide added peace of mind.
Service Contract Features and Benefits*
Roadside Assistance - for lock outs, fuel delivery, flat tire assistance, and battery service
Rental Vehicle Assistance
Tire Road Hazard - repair or replacement due to road hazard damage
Trip Interruption - overnight repairs needed and over 100 miles from home; assistance with meals and lodging
One-time cost: the contract premium can be financed as part of your vehicle loan
60-day money-back guarantee (if no claims are made)
Contract stays with the vehicle if paid off before expiration.
Contract is transferable if you sell your vehicle privately. (administration fee applies)