Car and Loan Protection
Wave goodbye to car worries! With TEGFCU’s Protection Plans, you can shield your ride and wallet. It’s easy, it’s effective, and it’s designed just for you. So why wait? Take the next step with TEGFCU Car and Loan Protection today. Your peace of mind is just a click away!
TEG Payment Assurance
TEG Payment Assurance ensures financial protection for your auto loan, personal loan, or credit card. It provides added security by covering your payments in case of unexpected events. Good on Auto, Personal Loans, and Credit Cards.
Gap Protection
Gap insurance covers the difference between the amount owed on a car loan and its actual cash value after a total loss.
TEG Payment Assurance
Help protect your loan. Help preserve your standard of living.
Whether you’re taking out a loan to make home improvements or buying a vehicle, you should take steps to protect yourself and your family in case something unforeseen happens. You’re betting you can pay back your loan, and you won’t lose your job (through no fault of your own), become disabled (due to injury or illness), or pass away, which could leave your family responsible for your loan balance. Life events can cause financial hardship, making bill-paying difficult. You don’t want delinquent payments and defaulted loans to impact your finances.
Help play it safe.
TEG Payment Assurance is a voluntary loan-payment protection product that is designed to help you get relief from loan payments if a protected life event unexpectedly happens to you. Simple eligibility requirements help ease the signup process.
Protection that matters.
If a protected life event happens to you (and you’re a protected borrower or co-borrower on the loan), TEG Payment Assurance will cancel or waive your loan payments up to the contract maximums—helping lessen your family’s worries about paying loans during a time when your income may be reduced or lost and paying other household bills becomes challenging. We offer several options you could protect yourself against. These events could include:
- Loss of life, as outlined in your contract
- Disability, as outlined in your contract
- Involuntary unemployment, as outlined in your contract
Guaranteed Asset Protection (GAP)
Guaranteed Asset Protection (GAP) is a safety net for your Auto Loan. If your vehicle is stolen or totaled, GAP can bridge the financial difference between what your car insurance will cover and what you still owe on your loan. This could save you from unexpected out-of-pocket expenses that could potentially amount to thousands of dollars.
If your vehicle is totaled, you may owe more on your loan than your current worth. This situation is often called being “upside down” on your loan. As vehicle prices rise and longer-term loans become more common, the risk of finding oneself “upside down” on a loan has increased. Many Americans are taking on substantial vehicle loan debt for extended periods. Nearly one in every four car buyers opts for a 6 to 7-year loan, extending their risk period of being “upside down” to approximately five and a half years.
This issue arises because most car insurance companies only reimburse the “fair market value” of your vehicle. This is the typical resale value for a specific car based on factors like make, model, age, mileage, condition, and demand. However, this might not feel fair if your vehicle is totaled and you still owe more on your loan than the insurance company deems your vehicle is worth.
The most significant discrepancy between your loan value and the fair market value typically occurs within the first few years of your loan. As soon as you drive your new car off the lot, its value depreciates. Value often drops 20% in the first year and 50-60% over five years*. However, your loan value doesn’t decrease at the same rate, creating a gap. This is why it may be wise to consider additional loan protection.
Here’s a breakdown of the typical depreciation over five years:
| Year 1 20% | Year 2 15% | Year 3 10% | Year 4 8% | Year 5 7% |
DOWNLOAD BROCHURE
For more information, please download our brochure or call us at 845.452.7323.
Don’t let a damaged vehicle damage your finances! Consider GAP Asset Protection from TEG.
Your purchase of MEMBER’S CHOICE™ Guaranteed Asset Protection (GAP) is optional and will not affect your application for credit or the terms of any credit agreement required to obtain a loan. Certain eligibility requirements, conditions, and exclusions may apply. Please contact your loan representative or refer to the GAP Waiver Agreement for a full explanation of the terms of GAP. If you choose GAP, adding the product fee to your loan amount will increase the cost of GAP. You may cancel the protection at any time. If you cancel protection within 90 days, you will receive a full refund of any fee paid. You will receive additional information before you are required to pay the fee for this product.
Your purchase of TEG Payment Assurance is optional and will not affect your application for credit or the terms of any credit agreement required to obtain a loan. Certain eligibility requirements, conditions, and exclusions may apply. Please contact your loan representative or refer to the Member Agreement for a full explanation of the terms of TEG Payment Assurance. You may cancel the protection at any time. If you cancel protection within 30 days, you will receive a full refund of any fee paid.
