Gap insurance is for when there is an accident in which you’ve badly damaged or totaled your car. Gap insurance covers the difference between what a vehicle is currently worth (which your standard insurance will pay) and the amount that you still owe on the vehicle.
You may want to consider buying gap insurance for your new car or truck purchase if you:
- Made less than a 20 percent down payment
- Financed for 60 months or longer
- Leased the vehicle (carrying gap insurance is generally required for a lease)
- Purchased a vehicle that depreciates faster than the average
- Rolled over negative equity from an old car loan into the new loan
MMCCU offers gap insurance through a partnership with Allied Solutions. Learn more here.
Auto Deductible Reimbursement is also included with this particular gap insurance. For the first three years of the loan, a member who has to use their insurance and incurs a deductible (up to $500) is able to submit a claim to be reimbursed for the payment. (For example, a member who has a $250 deductible and has to repair their vehicle is eligible to receive payment of $250 from the company to reimburse them for their deductible.)
If you have any questions, feel free to reach out to us here at MMCCU!