Consider Vehicle Loan Protection
One you’ve agreed to the price of the vehicle and signed the loan documents, it may be wise to consider loan protection in case your vehicle is totaled in an accident or the unexpected occurs and you become involuntarily unemployed. Travis Credit Union representatives can help explain these two insurance products:
Guaranteed Asset Protection:
What if your new vehicle is stolen or totaled in an accident just a few months after you bought it? Since your car insurance will only pay the value of the vehicle at the time of its loss, chances are that amount won’t be enough to pay off your auto loan. Guaranteed Asset Protection (GAP) coverage pays this difference. GAP is available for private passenger cars, vans and light trucks, as well as for motorcycles, ATVs, snowmobiles and personal watercraft. Even recreational vehicles and watercraft are eligible.
You can purchase GAP from Travis Credit Union within 90 days from the date your loan is funded. Please note GAP will not pay for items such as late fees, interest, credit protection and service contracts that could be cancelled and returned to the loan balance or remaining balances due to over-financed loans.
MVP is voluntary payment protection that you can add to an eligible loan. It assists you in making payments during a financial hardship. MVP acts likes an emergency payment plan that will make your loan payments should you become involuntarily unemployed, disabled or die. For example, MVP will make your monthly auto loan payments, up to the agreement maximum, should payment protection be needed. For a loss of life, it will cancel your outstanding loan balance, up to the agreement maximum.
MVP coverage is available in three options for up to two borrowers per loan. Costs vary by plan. Only TCU consumer loans and credit cards are eligible for MVP coverage and the cost of the protection can be conveniently rolled into your loan agreement to become part of your monthly payments.