Choosing the Right Insurance Products Each year, new vehicle purchase prices continue to escalate, making automobiles the second largest investment most people own today. Unfortunately they are also one of the fastest depreciating assets you can own. Did you know that if you totaled your brand new vehicle fifteen minutes after you drove it off the lot, your insurance policy, typically, wouldn't pay the entire amount you just financed. Based on today's vehicle costs, that could run you thousands of out-of-pocket dollars, above your insurance coverage. The average cost of today's new vehicle exceeds twenty thousand dollars and most upscale models range between thirty and fifty thousand dollars. It only makes sense to regularly maintain and adequately insure your vehicles. Three Types of Insurance The credit union offers three types of insurance that everyone should have when they purchase a new vehicle: GAP insurance, extended  warranty maintenance policies, and credit life insurance. All three insurance policies are relatively inexpensive and will protect your second largest asset, should misfortune strike.   Covering Your Entire Purchase Your dealership finance contract usually includes extended warranty costs, after market upgraded accessories, dealer preparation services, plus the financing costs and any additional fees the dealer may charge for arranging financing of your vehicle. The typical insurance policy only covers the basic vehicle Blue Book price plus the factory options. If you total your vehicle on the way home from the dealership, you could still owe several thousand dollars on a vehicle you can no longer drive! GAP insurance covers 100% of the balance not covered under your vehicle insurance coverage. The credit union can offer this special protection at a very economical cost and the premium can be included in your loan. Extended Warranty Maintenance The second insurance product available at your credit union is an Extended Warranty Maintenance Policy. For those purchasing 4-wheel  drive sports utility vehicles (SUVs) this insurance is critical, should you experience drive train or transmission problems. Without this policy you could easily spend thousands of dollars replacing these two items alone! Extended Warranty Maintenance policies normally cover transmission replacement or repair, drive trains, and major motor repair. Many people make the mistake of buying this insurance from the dealership and pay twice as much as they would at the credit union, for identical coverage! Credit Life and Disability Our third insurance product is Credit Life and Disability. If you're raising a young family, or your payment will be very painful to make because of a  tight monthly budget, you definitely need this coverage. Credit Life and Disability makes your payments if you hurt yourself and can't work for an extended period of time. Should you suddenly die while the policy is in place, your vehicle will be paid in full! What better protection could you ask for your loved ones? Pre-Approval Before You Shop Before you go shopping for your next new or used vehicle, stop by the credit union first. We'll pre-approve your loan, provide blue book price quotes on your vehicle, and take care of your insurance needs. All the insurance mentioned in this article may be financed in your monthly vehicle finance payments. * The articles and opinions on this web site are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your attorney, accountant, or financial advisor with regard to your individual situation.

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