When you drive off the lot in a new (or new-to-you) vehicle, the last thing you want to think about is what could go wrong. Protecting your investment means more than buying auto insurance. That’s where Guaranteed Asset Protection (GAP) and Mechanical Breakdown Protection help. These products can safeguard your finances against unexpected losses and costly repairs, enabling you to stay financially secure and stress-free.
What is GAP?
Guaranteed Asset Protection (GAP) is designed to cover the “gap” between what your insurance pays and what you still owe on your auto loan if your car is totaled or stolen.
Imagine this: You owe $20,000 on your car loan, but your insurance only pays $16,000 after a total loss. That $4,000 difference? GAP covers it.
Benefits of GAP:
- Pays off your remaining loan balance after a total loss.
- Covers up to $1,000 of your insurance deductible.
- Auto Advantage Program: Get up to $500 per insurance claim for covered losses.
- Bonus perks like identity restoration and warranty tracking
GAP is especially useful for those who finance vehicles with little or no down payment, or who trade in vehicles with existing loan balances. It’s a smart way to avoid being stuck with a loan and no car after a total loss.
What is Mechanical Breakdown Protection?
Mechanical Breakdown Protection (MBP) is similar to an extended warranty covering repair costs for mechanical and electrical failures that may occur after your manufacturer’s warranty has expired. You are not left footing the bill for a surprise breakdown.
Benefits of MBP:
- 24/7 roadside assistance including towing, battery jump-start, and lockout service.
- Rental car reimbursement while your car is in the shop.
- Trip interruption coverage for meals and lodging if your breakdown far from home.
- Coverage for electronics and high-tech components with select plans.
- 60-day free look period to review and cancel if needed.
Whether you drive a brand-new SUV or a reliable used sedan, MBP helps you avoid costly repair bills and keeps your vehicle running smoothly.
Why You Should Consider Both
Together, GAP and MBP offer a powerful safety net:
- GAP protects your wallet if your car is totaled or stolen.
- MBP protects your car from expensive repairs after the warranty ends.
Ready to protect your ride? Contact White Rose Credit Union today or schedule an appointment to learn more about GAP and MBP and how they can give you peace of mind on the road.
