Loans » Auto Loans » Protect Your Assets
Auto Loans—Protect Your Assets
We offer two products that will protect yourself (and your pocketbook) in the event of death or disability, or if your car is stolen or accidentally totaled. Life never goes as planned, but you can take steps now to protect your assets. You can sign up for both of these when you apply for your loan. If you need help deciding, ask your UW Credit Union Financial Specialist to examine your situation and determine whether extra protection makes sense for you.
Payment Protection
This valuable insurance pays your monthly loan amount in the event of death or disability. At a time when you need it most, this insurance protection will come through for you.
GAP Coverage
GAP Calculator
GAP Coverage Example
| Original loan amount | $25,000 |
| Loan balance one year later | $20,000 |
| Vehicle's current value | $16,000 |
| GAP benefit | $4,000 |
It happens all the time: The minute you drive away in your new or used vehicle, it depreciates and is worth less than the amount you owe on it. This is especially true for new cars. If your vehicle is stolen or totaled, its cash value can be thousands less than the amount you owe on the loan. You'll pay out of pocket for the difference. For only a few dollars a month GAP can save you from this unexpected expense.
GAP is a non-insurance waiver that covers the "gap" between the vehicle's value and the amount owed on the loan, not including delinquent payments, late charges, and other insurance-related charges. GAP even covers up to $1,000 of your deductible. Following is an example of how GAP can save you money.
Vehicles Covered
Coverage is available for both new and used vehicles, including all car makes and models, vans, light trucks, motorcycles, snowmobiles, jet skis, ATVs, and golf carts. GAP can be purchased when you receive your vehicle loan or at any time during the life of your UW Credit Union vehicle loan. For maximum benefit, we recommend acquiring this protection within the first 18 months. Coverage is completely refundable if cancelled within the first 60 days.
Who Needs GAP?
Consider GAP if you financed more than 75% of your vehicle cost, or if a significant, unexpected expense would be difficult for you to pay. If you need help deciding, ask your UW Credit Union Financial Specialist to examine your situation and determine whether this protection makes sense for you.
Cost
Through UW Credit Union, you pay just $295 for GAP coverage, which is far less than the $400+ amount charged by dealerships and insurance companies. Sign up for GAP when you apply. Most people simply roll the amount into their monthly loan payment to make this beneficial coverage affordable and easy!
Ask for a quote today!
The value of this coverage varies depending on the "gap" in your vehicles assessed value and your loan balance. Calculate your vehicle's "gap" to see how much this benefit is worth to you.
