The rising cost of living and auto repairs can put a strain on your finances. To help you stay protected in case of unexpected events, Southland Credit Union offers loan protection plans designed to safeguard your financial well-being. Depending on the specific plan you choose, coverage can activate if you lose your job due to illness or disability, if your vehicle is stolen or damaged beyond repair or if you face costly repairs after your manufacturer’s warranty has expired.
To learn more or to get a quote, call us at (800) 426–1917.
Guaranteed Asset Protection (GAP)
Is your car loan balance higher than its value?
Did you know that if your vehicle were to be stolen or damaged beyond repair (totaled), your insurance company might not pay off the entire loan balance? That’s because your insurance company’s settlement is based on the vehicle’s actual cash value. Due to increasing vehicle purchase prices and declining vehicle values, the outstanding loan balance is often higher than the actual cash value.
You could end up paying off a loan balance for a vehicle you can no longer drive. Guaranteed Asset Protection, or GAP, is a voluntary debt cancellation product that can waive the deficiency balance in the event your vehicle is totaled or stolen and may protect you from incurring such a large financial loss. Plus, an additional $1,000 will be applied towards the financing of a replacement vehicle through Southland Credit Union.
Mechanical Breakdown Insurance (MBI)
Protect yourself against increasing repair and labor costs
MBI Benefits:
- Roadside assistance
- Rental car allowance
- Paintless dent repair
- Windshield repair
- Key/remote replacement
- Consequential damage coverage
- Competitively priced coverage for new and used vehicles
- Cost can be financed into your loan payment
- Coverage can be canceled at any time for any reason
Depreciation Protection Waiver (DPW)
Protect the equity of your vehicle
Depreciation Protection (DPW) provides protection on your vehicle equity and hedges against depreciation over the life of the loan. In the event of a total loss, DPW provides a waiver benefit equal to the difference between the vehicle value at the time of purchase, less the loan balance at the time of loss up to a maximum waiver benefit of $10,000*, or the outstanding loan balance.
Benefits of protection:
- Protection for collision
- Life of loan protection
- No mileage or year restrictions
- Protection for theft and fire
- 100% open enrollment
- Protection for vehicle depreciation
Debt Protection
Protect what matters
Life is unpredictable. There are a wide range of unexpected events that could leave you and your family scrambling to pay monthly bills. In the event of death, disability or unemployment, you wouldn’t want your family to worry about making your loan payments.
With Debt Protection, your loan balance or monthly loan payments may be canceled without penalty or added interest.
- In the event of death, it cancels the remaining loan balance up to a maximum in the contract.
- If you become disabled, it cancels up to a maximum number of loan payments based on the contract.
- If you are involuntarily unemployed, it cancels up to a maximum number of loan payments based on the contract.