Merrimack Valley CU
Auto & Personal Credit Card Mortgage & Home Equity Undergraduate, Graduate, & Refi Commercial Loans & Lines

Online Banking

Forgot Username?

Forgot Password?

Register

Need Help?

Online Banking

Forgot Username?

Forgot Password?

Register

Need Help?

credit union, gap insurance, car insurance, car ownership, auto loan, car protection
Home / News & Financial Education / Get Added Protection on Your Auto Loan with GAP Insurance
Get Added Protection on Your Auto Loan with GAP InsuranceBy merrimack on 11/26/2024

Get Added Protection on Your Auto Loan with GAP Insurance

Accidents can happen when you least expect it, and if your car is totaled or stolen, you want to be prepared. That’s where GAP insurance comes into play.

What is Gap Insurance?

Guaranteed Asset Protection (GAP) insurance is designed to cover the financial gap between what you owe on your auto loan and your car’s value. The moment you drive off the lot with your new vehicle, it starts to lose value, and this depreciation continues over time. If your vehicle is totaled, standard auto insurance typically pays out only for its current market value. This means you could be responsible for covering the difference between that payout and your outstanding loan balance. GAP insurance helps bridge this gap, ensuring you aren't left with unexpected costs when your vehicle is deemed a total loss.

Why You Need GAP Insurance

A totaled vehicle doesn’t have to lead to a total financial loss! If your car is declared a total loss after an accident, you may find yourself having to pay off the remaining loan while also needing to buy a new vehicle. GAP insurance is your safety net, knowing that your investment is protected.

MVCU offers members the option of GAP insurance during loan closing, providing peace of mind while driving your new car. Additionally, GAP insurance may provide coverage if your car is stolen, after an investigation. It’s important to note that there may be situations where out-of-pocket costs could still apply, so be sure to consider your options. GAP insurance coverage is subject to terms, conditions and exclusions that may affect the total amount covered.

For comprehensive details on coverage and limitations, please refer to your GAP agreement. For more information, including coverage terms, exclusions and costs, call our Member Support Team at 800-356-0067 or visit  https://www.mvcu.com/auto.

Learn more

 

  • Share:

Category: Car Ownership



« Return to "Blog"

You may also like:

MVCU, savings
2/15/2024

Unlocking Financial Goals: The Power of Club Accounts

Need a smart strategy to save on essential school supplies? Planning your dream vacation or gearing up for the holiday season? With a club account, you can save for essential school supplies, exciting vacations, and joyful holiday celebrations, making your financial goals more attainable and stress-free.

Read more

By merrimackCar Ownership
MVCU, Taxes, Filing taxes, Tax tips
3/7/2024

Preparing for Tax Season

Now is the moment to turn your attention to your tax obligations. With less than 60 days remaining until the tax deadline now is a good time to prepare your documents and file.

Read more

By merrimackCar Ownership
credit union, halloween, holiday, savings
9/23/2024

Avoiding Financial Frights: How to Budget for Halloween Spending

Halloween is a time for spooky fun, but it can also bring a scare to your wallet if you're not careful. From costumes to decorations and treats, the costs can add up quickly. Here’s how to manage your Halloween budget and keep your spending under control while still enjoying the festivities.

Read more

By merrimackCar Ownership
credit union, holiday, scams, fraud
11/1/2024

Stay Safe from Gift Card Scams This Holiday Season

As the holidays approach, gift cards remain a popular gift option, but they’re also a target for scammers. These fraudsters use tactics like phishing and tampering with physical gift cards to steal funds before they can be used. To protect yourself and your loved ones this season, it’s important to stay aware of these risks.

Read more

By merrimackCar Ownership
credit union, gap insurance, car insurance, car ownership, auto loan, car protection
11/26/2024

Get Added Protection on Your Auto Loan with GAP Insurance

Accidents can happen when you least expect it, and if your car is totaled or stolen, you want to be prepared. That’s where GAP insurance comes into play.

Read more

By merrimackCar Ownership