Inflation and economic downturns can significantly impact households, underscoring the importance of comprehensive asset protection. Within the past couple of years, we have seen a surge in inflation rates and even the initial signs of a recession, leaving many individuals and families concerned about safeguarding their financial well-being. A heavily impacted auto industry that is still recovering from the pandemic is also making it challenging to find replacement vehicles. Many vehicles are back to losing value at a higher rate than during the pandemic. Amidst such uncertainty, traditional insurance products like auto, homeowners, and health insurance are commonly acknowledged necessities. However, there exists a realm of equally valuable asset protection solutions that can offer vital peace of mind in times of unexpected life events.
Guaranteed Asset Protection
Guaranteed Asset Protection (GAP) coverage, which bridges the gap between a vehicle's value and the outstanding auto loan balance, offers a prime example of a protection product that greatly mitigates risk. In the event of a totaled car, GAP coverage steps in to cover the difference between what is owed on the loan, and what an insurance company is willing to pay. As an example; let’s suppose that someone bought a brand new car a year ago and it gets totaled. $13,000 is still owed on the loan, but due to depreciation the insurance company is only going to pay $10,000. GAP makes up that $3,000 difference so you’re not faced with high out-of-pocket costs. Additionally, with SAFE GAP, if you purchase a vehicle within 90-days and finance with SAFE, a GAP Plus claim pays you another $1,000 towards the purchase.
Total Restart
Many people are keeping their vehicles longer and paying down or paying off their loans. At this point, there is equity built up and that is worth protecting. SAFE has added a protection tool called Total ReStart that does just that. Just as GAP pays off a loan after a total loss, Total ReStart pays back the equity to our member up to the amount of the policy purchased, when a replacement vehicle is financed with SAFE. This can be purchased as a standalone product or in conjunction with a loan.
Auto Deductible Reimbursement
Auto Deductible Reimbursement (ADR) is an added benefit of both GAP and Total Restart which reimburses up to $500 any time a deductible is paid by the borrower or co-borrower and applies to all vehicles registered to either party for 3 years.
Mechanical Breakdown Insurance
Mechanical Breakdown Insurance, or MBI, can be compared to health insurance for your car. MBI covers the cost of repairs for major failures not caused by collisions or poor maintenance. These policies also last longer than extended warranties, greatly enhancing the protection as your vehicle ages.
Payment Protection
If you lose your job or experience an issue that requires you to go on disability, payment protection will give you peace of mind by covering up to six months of loan payments up to $1,000 or less. You can also choose to add the death benefit that can completely pay off a loan of up to $75,000, giving your loved ones less to worry about. Having up to 6 months of payments covered during times of unforeseen circumstances allows time to look for another job or heal from an accident or health issue. Payment Protection shields borrowers from detrimental impacts to their credit rating and helps maintain financial stability. Eligibility restrictions may apply.
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