If you’re ever in a car accident, GAP insurance could truly save the day when it comes to protecting your finances. This type of insurance covers the “gap” between how much you owe on your auto loan and how much the car is currently worth if your automobile gets totaled. Here’s what that might look like in real life…
For example*, imagine that you purchased a new car and took out a loan for $31,000. Unfortunately, after 2 years, your car is totaled in an accident. Based on your loan, this is how the math would work:
The gap between the $19,800 you owe and the $15,000 the insurance company pays you is $4,800! You still owe that much money to your lender and you don’t even have the car anymore– yikes!
This type of coverage is a great choice if you think you’ll ever be “upside down” on your car loan or lease, meaning you’ll owe more money than the car will be worth.
If you put little or no money down when financing your vehicle, or if you expect your car to depreciate quickly (ex: excess mileage), you are a great candidate for gap insurance.
How can you save money on GAP insurance? Don’t buy it directly from a car dealer when you purchase or lease your car (because the price is often marked up). You could save several hundred dollars by getting Gap insurance directly through your auto insurance company instead. As a bonus, many insurance companies offer monthly payments for this type of insurance instead of the one hefty upfront fee you’d likely pay at a dealership. Also, many dealers charge a flat rate of several hundred dollars up front for a gap policy, but your insurance company will likely offer the option of monthly payments for comparable coverage.
Our members can save money on insurance with special discounts just for credit union members!
*These numbers are used as an example only and are hypothetical. Contact us directly for current rate information: visit mvcu.com or call 800-356-0067.
The insurance offered is not a deposit of the Credit Union, is not protected by NCUA or any other type of deposit insurance, is not an obligation of or guaranteed by the Credit Union and may be subject to risk.
Category: Car Ownership
Here’s a big secret that could save you some money: auto financing is not just about the loan. When you control the financing, you control the deal! In this blog I’m going to share how you can walk into a car dealership with confidence and get the best deal without falling for any expensive tricks.
You’re ready for some new wheels, but should you buy new or used? There are passionate arguments on both sides, so you have to take your needs, wants, and budget into account while making this important decision.
Are you excited about the possibility of getting a new car, but dreading the pressure-cooker car dealer shopping experience? If you’ve EVER bought a car you probably remember how long, stressful, and confusing the process was. Nobody wants that, right?
If you’re ever in a car accident, GAP insurance could truly save the day when it comes to protecting your finances. This type of insurance covers the “gap” between how much you owe on your auto loan and how much the car is currently worth if your automobile gets totaled. Here’s what that might look like in real life…
Buying a car can be a daunting process, even in the best of times. You have to navigate confusing “asterisk” advertisements, where things like prices, trade values, interest rates, monthly payments, and availability are all disclaimed. And then there’s the long, stressful negotiation at dealerships (“Let me talk to my manager”).
Will you be watching the Super Bowl this year? Aside from the cheering and half-time show, you’ll also likely see a ton of car commercials if you tune in to watch the big game. Car commercials can be flashy and exciting, and may get you dreaming about getting into a new car. But with car commercials it’s super important to read between the lines; if an ad seems too good to be true… it is. Here are some things to look for:
If you’re in the market for some new wheels, you may be confused about leasing. Is it better to lease or buy your next car? There are passionate arguments on both sides, so you have to take your needs, wants, and budget into account while making this important decision. Below are some pros and cons of leasing– we’ll leave it up to you to decide which is best for you.
February is a BIG month for car sales! You’ll find many Presidents’ Day special deals from the auto makers, car dealerships and financial institutions. Before you shop for your new car, here are some smart strategies to help you drive home with the right car and the best deal!
Even if you’re a fantastic driver, you’re surrounded by other drivers every time you hit the road—and they may not be skilled, alert, focused, sober or even awake! Did you know that MILLIONS of car accidents happen in America each year?
This type of insurance covers the “gap” between how much you owe on your auto loan and how much the car is currently worth if your automobile gets totaled. For example*, imagine that you purchased a new car and took out a loan for $31,000. Unfortunately, after 2 years, your car is totaled in an accident. Based on your loan, this is how the math would work:
Traditionally, February is a BIG month for car sales! You’ll find many Presidents’ Day special deals from the auto makers, car dealerships and financial institutions. Before you shop for your new car, here are some smart strategies to help you drive home with the right car and the best deal!
Car buying has never been for the faint of heart. Now, though, there’s a new challenge: inventory! On top of the usual wading through dense disclosures in ads, haggling at the dealership, and securing financing, you have to work a lot harder to find a car!
Life is busy. Not enough hours in the day, right? But even when you’re not busy, it would be nice to enjoy what little down time you have. So when shopping for a new car feels like ONE MORE THING on your to-do list, let the experts check it off for you!
Owning a car is becoming a costlier affair for drivers nationwide, with auto insurance costs seeing a surge of approximately 26%* from the previous year. In the face of continuously rising rates, RTN Insurance Agency is here to assist you in discovering the most competitive rates.