Mississippi Valley Credit Union: Gap Insurance Offerings

IH Mississippi Valley Credit Union (IHMVCU) offers a range of financial services to its members, including auto loans and insurance products. One of the insurance products they offer is GAP insurance, which stands for Guaranteed Asset Protection. GAP insurance covers the difference between what is owed on a car and its worth if it is deemed a total loss due to an accident or theft. IHMVCU also provides various other benefits to its members, such as discounts on community events and financial guidance. With a strong membership base and assets, IHMVCU is the largest credit union in the Quad City area, serving members in eastern Iowa and western Illinois.

IH Mississippi Valley Credit Union offers GAP insurance as protection against the unexpected

IH Mississippi Valley Credit Union (IHMVCU) is the largest credit union in the Quad Cities region, serving over 140,000 members with $1.8 billion in assets. They offer a range of financial services, including auto loans, to help their members on their financial journeys.

One of the services they offer is GAP insurance, which stands for Guaranteed Asset Protection. GAP insurance covers the difference between what you owe on a car and what it's worth if it's totaled in an accident or other covered loss. This can be a valuable form of protection, as it helps to ensure that you're not left with high out-of-pocket costs if your vehicle is damaged or destroyed.

IHMVCU's GAP insurance is part of their commitment to protecting their members and providing convenient financial solutions. They understand that life can be unpredictable, and they want to help their members prepare for unexpected expenses. By offering GAP insurance, IHMVCU gives members peace of mind and helps them manage their finances effectively.

In addition to GAP insurance, IHMVCU also offers other types of insurance, such as extended warranties and payment protection. These additional insurance products further enhance the protection available to members and demonstrate IHMVCU's comprehensive approach to financial services.

With their range of insurance offerings, IHM Mississippi Valley Credit Union empowers its members to navigate life's challenges and unexpected events with greater financial security and confidence.

GAP insurance covers the difference between what you owe and the value of a totaled car

Guaranteed Asset Protection (GAP) insurance covers the difference between the insurance payout and what's left on your auto loan if your vehicle is stolen or deemed a total loss. In other words, it bridges the gap between what you owe on your car loan and what your car is actually worth.

For example, if you owe $25,000 on your loan and your car is only worth $20,000, GAP insurance will cover the $5,000 difference, minus your deductible. This type of insurance is especially useful if you have a high interest rate or if you paid more for your car than it's worth, as it prevents you from continuing to make payments on a vehicle you can no longer drive.

GAP insurance is optional and is available from car insurers and dealers. It is also offered by IH Mississippi Valley Credit Union as part of their auto loan package. This can be a valuable form of protection if you owe more on your car than it is worth, but it is important to note that it does not cover all scenarios, such as repairing a damaged but drivable vehicle, the value of a stolen or repossessed car, or extended warranty costs.

When considering whether to purchase GAP insurance, it is important to weigh the costs and benefits. While it can provide financial protection in certain situations, it may not be necessary if you have paid a large down payment on your vehicle or if the amount you owe is less than the car's value. Additionally, GAP insurance may not cover all expenses related to your loan, such as finance charges or excess mileage fees.

IHMVCU is the largest credit union in the Quad City area

IH Mississippi Valley Credit Union (IHMVCU) is the largest credit union in the Quad City area. Founded in 1934 by eight charter members who were production line workers at the East Moline Works Plant, IHMVCU has grown to serve over 140,000 members and manage over $1.8 billion in assets. This makes it not only the largest credit union in the Quad Cities region but also the sixth-largest in Illinois.

With 12 physical branches in eastern Iowa and western Illinois, as well as a progressive and growing online branch, IHMVCU provides convenient financial solutions to its members. The union offers a range of services, including savings and checking accounts, loans, and insurance products.

One of the key features of IHMVCU is that it is a member-owned financial cooperative. This means that the members are also the owners, and the union exists solely to help its members and communities succeed financially. Every dollar put into IHMVCU goes back into supporting the people and communities they serve.

IHMVCU offers a variety of insurance products, including extended warranties, GAP coverage, and payment protection. These insurance options provide protection against unexpected financial bumps in the road, such as vehicle repairs or accidents.

In addition to its financial services, IHMVCU is committed to community involvement and support. The union offers various community support programs and has initiatives to encourage healthy savings habits among youth. With no restrictive rules about employment or affiliations, IHMVCU welcomes anyone living or working in its 49-county service area to join their community and benefit from their financial guidance and solutions.

IHMVCU offers a range of insurance products, including extended warranties and payment protection

IH Mississippi Valley Credit Union (IHMVCU) offers a range of insurance products, including extended warranties and payment protection. With a variety of insurance products, IHMVCU helps protect its members from unexpected bumps in the road.

As a member-owned financial cooperative, IHMVCU is committed to helping its members, team members, and communities find success on their financial journeys. Their insurance products are designed to provide peace of mind and financial security in the event of unexpected circumstances.

One of the key insurance products offered by IHMVCU is extended warranties. Extended warranties can provide additional coverage for purchases, such as vehicles or appliances, beyond the standard manufacturer's warranty. This type of insurance can help protect against the cost of unexpected repairs or replacements, giving members added reassurance and potentially saving them money in the long run.

Another important insurance product offered by IHMVCU is payment protection. Payment protection insurance can provide financial support in the event of unforeseen circumstances that affect a member's ability to make payments on their loans or credit obligations. This type of insurance can help cover loan payments if a member loses their job, becomes ill, or faces other covered difficulties. Payment protection ensures that members can stay on track with their financial commitments, even during challenging times.

In addition to extended warranties and payment protection, IHMVCU also offers GAP insurance for vehicles. Guaranteed Asset Protection (GAP) insurance covers the difference between the amount owed on a car loan and the car's actual cash value if it is deemed a total loss due to an accident or theft. This type of insurance is particularly valuable when the amount owed on a vehicle exceeds its current market value, protecting members from high out-of-pocket expenses.

IHMVCU's range of insurance products reflects their commitment to providing comprehensive financial solutions for their members. By offering extended warranties, payment protection, and GAP insurance, IHMVCU helps members manage risks, protect their assets, and maintain financial stability, demonstrating their dedication to being a trusted guide on their members' financial journeys.

GAP insurance is recommended for new car owners to protect against high out-of-pocket costs

GAP Insurance: Protection Against High Out-of-Pocket Costs

GAP insurance is a highly recommended form of financial protection for new car owners, shielding them from potentially high out-of-pocket expenses. This type of insurance is particularly useful for those who have taken out a substantial loan to purchase their vehicle.

"GAP" stands for "guaranteed auto protection". It is a supplemental auto insurance policy that covers the difference between the current value of a vehicle and the outstanding loan amount in the event of a total loss. This typically occurs when a car is involved in an accident, stolen, or declared a total loss.

When you purchase a new car, it begins to depreciate immediately, often losing 10% of its value as soon as you drive it off the dealership lot. This depreciation can result in a "gap" between the amount you still owe on your auto loan and the vehicle's current market value.

If your new car is in an accident or is stolen, standard car insurance will only cover the current value of the vehicle, leaving you with a significant financial burden if the outstanding loan amount exceeds that value. This is where GAP insurance comes in—it covers this difference, protecting you from unexpected costs.

GAP insurance is especially beneficial if you find yourself in any of the following situations:

• You made a small down payment (less than 20%) on your vehicle.
• You have a long-term loan (60 months or more).
• You leased your vehicle.
• You purchased a vehicle that depreciates faster than average (e.g., luxury cars or electric vehicles).
• You rolled over negative equity from a previous car loan into your current loan.

Where Can You Get GAP Insurance?

You can purchase GAP insurance from a variety of sources, including car insurance companies, banks, credit unions, dealerships, and lenders. It is often more affordable to buy it from a car insurance company, where it can be added to your existing policy for as little as $20 to $40 per year. Dealerships and banks typically charge a one-time fee of up to $700, which can be added to your auto loan but will accrue interest.

If you made a substantial down payment on your vehicle, you may not need GAP insurance. Similarly, if you are paying off your car loan in less than five years and your vehicle is not expected to depreciate rapidly, the need for GAP insurance is reduced. It's important to periodically check your loan balance and compare it to your car's value; if you owe less than the car is worth, you can safely cancel any GAP coverage.

Frequently asked questions