Buying a vehicle is one of the most significant purchases you’ll make, so ensuring it’s protected is very important. Guaranteed Asset Protection (GAP) and Mechanical Repair Coverage (MRC) are essential in protecting your new vehicle.

First, let’s take a look at GAP coverage. Did you know a newly purchased vehicle depreciates the second you drive it off the dealer’s lot? Within the first year, most cars will lose up to 20% of their value. If your vehicle is totaled in an accident or stolen and not recovered, you could end up owing more than the vehicle is worth.  

GAP coverage is designed to reduce or eliminate the difference between the insurance settlement and the loan balance. This protection can save you tons of money from sudden out-of-pocket expenses. In comparison, standard auto insurance will only pay up to the value of your vehicle. GAP coverage will protect you from the difference.   

So, how do you obtain GAP coverage? There are a few different options. The first option to sign up for GAP is with your auto loan when you purchase your new vehicle– Triangle Credit Union offers GAP coverage as an additional option to our auto loans. Another option for obtaining GAP coverage is through your auto insurance provider although not every insurance provider offers GAP coverage so make sure you do your research to see if it is offered through your auto insurance provider.

Now, let’s look at Mechanical Repair Coverage (MRC). This coverage can help limit unexpected, covered repairs as your vehicle ages, potentially saving you thousands of dollars in repairs. MRC includes many benefits, such as car rental reimbursement, 24-hour roadside assistance, and car key replacements. It will even cover travel expense reimbursements when a covered breakdown occurs 100 miles or more from your home and your vehicle is held overnight at a repair facility. 

With vehicles already being a significant expense, it makes sense to be fully covered in case something goes wrong. GAP coverage and MRC can save you thousands of dollars, so if you’re thinking about buying a car, you might want to consider getting one or both. Luckily, they’re available as add-on options for your new or existing auto loan from Triangle Credit Union!   

Already have an auto loan with another institution and not ready to refinance? GAP and MRC are also available to purchase out of pocket for those who don’t have a Triangle auto loan or don’t want it as a loan add-on. If you want this valuable coverage for an existing loan, stop by your nearest branch to get started!