Consider this with your next auto loan...

Insurance is one of those things – you kind of have to buy it, and you hope you never need to use it. But the right coverage is important! Are you protected?

Here are a few tidbits for you to consider:

• Automobiles are expensive.
• It’s easy to end up owing more than the vehicle’s value if you can’t put money down on a car; if you choose finance tax, title and license; if you get less than you owe on a trade-in; or if you buy a new car (due to the immediate depreciation). 
• You are “upside down” on your vehicle if you owe more than what the vehicle is actually worth. 
• Accidents happen – over 5 million car accidents occur each year. A
• One in seven car accidents (about 14%) will result the total loss of the vehicle. B
• In a total loss situation, the insurance company will reimburse you for the estimated value of the vehicle at the time of the loss.
• If your insurance payout doesn’t cover your full loan balance because you owe more than your car is worth, YOU are responsible for the difference, even though you don’t have the car anymore. 
• Horizon Community Credit Union’s Guaranteed Asset Protection (GAP) can keep you out of this predicament by covering the “gap” between what you owe and what the car is worth. 
• GAP is very affordable, and the premium is fully refundable within 90 days if you change your mind and decide to cancel coverage.
• You can enroll in coverage when you apply for your vehicle loan and the cost can be rolled into your loan amount and monthly payment. 
• A loan officer can give you more information with just a quick phone call! (920) 433-0122

Your primary insurance will protect the vehicle itself, but what it protecting you? If something happens to your car and it ends up being totaled, that alone is a traumatic experience. Having a loan balance left to pay makes things even worse. We can minimize the angst by making sure your loan balance will be completely taken care of. It’s a small investment that will be a HUGE benefit if something ever happened.

A Rocky Mountain Insurance Information Association. U. S. Auto Theft Statistics & Cost of Auto Crashes and Statistics. Copyright 2014. http://www.rmiia.org/index.asp

B AutoTrader.com. Crash Course for Coping With a Totaled Car. Copyright 2014. http://www.autotrader.com/research/article/car-news/168401/crash-course-for-coping-with-a-totaled-car.jsp

Post by: Erin S