Buying a car is one of the bigger purchases you’ll make in your life, and it’s important to protect that purchase. Insurance is obviously important, but there are additional ways to further protect your vehicle. MMCCU offers both depreciation protection and GAP insurance. What’s the difference? Not sure if you need these products? Contact our friendly team to learn more!
Depreciation Protection
Depreciation Protection kicks in if your vehicle is ever totaled or stolen and not recovered at anytime over the life of the loan. It waives some or all of your loan balance in the event of the total loss of your vehicle. The waiver benefit is equal to the difference between your vehicle’s MSRP or retail value at the time of DPW purchase, less the amount of your loan balance at the time of the loss.
You may want to consider depreciation protection if you:
- Put money down or have equity in the vehicle
- Make accelerated loan payments
- Desire protection from vehicle depreciation
- Desire peace of mind knowing the money invested in a vehicle could be protected
GAP Insurance
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
Both products through MMCCU come with the Auto Advantage Program. This includes Auto Deductible Reimbursement, which pays up to $500 per loss (with no limit) when claim is filed and paid with primary auto insurance carrier. In the event that the consumer suffers a loss on a motor vehicle they own & insure, this coverage will reimburse the consumer for an amount equal to the deductible limit shown on their Automobile Insurance Policy. The ADR is good for three years regardless if the loan is paid off before then.
MMCCU also offers extended warranties for your vehicle, ATV, or other power sports machines.
