Credit Union Shares Why to Consider GAP Insurance as Vehicle Prices Fluctuate

MARSHFIELD, WI (OnFocus) – When purchasing a new or used vehicle, it can be difficult to know what protection is needed and which is superfluous. As vehicle prices continue to fluctuate, it’s important for buyers to understand what resources are available to protect a new purchase.

“Gap insurance is for when there is an accident in which you’ve badly damaged or totaled your car,” explained Jerry Litwaitis, VP of Lending at MMCCU. “Gap insurance covers the difference between what a vehicle is currently worth (which your standard insurance will pay) and the amount that you still owe on the vehicle.”

Not everyone needs gap insurance when purchasing a new vehicle, but it can be beneficial in certain situations. Buyers may want to consider buying gap insurance for their new car or truck purchase if they:

• Made less than a 20 percent down payment
• Financed for 60 months or longer
• Leased the vehicle (carrying gap insurance is generally required for a lease)
• Purchased a vehicle that depreciates faster than the average
• Rolled over negative equity from an old car loan into the new loan

“As always, reach out to your financial institution to learn more before making a big vehicle purchase,” said Litwaitis. “We at MMCCU offer gap insurance and are well-versed to help you decide if it’s right for you. Happy to help!”

Learn more at www.MMCCU.com.

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