CLOSE YOUR AUTO LOAN-TO-VALUE GAP
What if you drove your new car off the lot and totaled it on the way home? That happens. In 2017, there was one reportable crash on Texas roadways every 59 seconds of every day, according to TxDOT. The accident that totals your car can also wreck your finances. And it hurts even more if you’re still making loan payments. The average new car depreciates 11 percent the minute you drive it off the lot, research shows. In a year, the value has depreciated by 20 percent. In all likelihood, the new car driver in this scenario owes more on their car than the actual cash value. An auto insurance policy covers only the actual cash value of your car at the time of the loss. That’s why many savvy drivers buy GAP (Guaranteed Asset Protection) coverage, which bridges the divide between the actual cash value of your vehicle and the amount you owe on the loan. GAP coverage is important if: • You made less than a 20 percent down payment • You financed for 60 months or more • You rolled over negative equity from an old car loan into a new loan • You have little cash in savings
While you could buy GAP at the dealership, which is often based on the price of the vehicle and rolled into the loan, Germania Credit Union offers an affordable option. “Our GAP plan is a flat $575 one-time payment for everyone,” said JoLynne Goldberg, GCU loan manager. “Anyone who has made a claim has been really happy to have it [GAP insurance], and they buy it every time they finance a vehicle.” Visit www.germaniacreditunion.com for information on auto loans and additional details on the GAP program they offer. This story corrects an earlier version that erroneously stated that GAP insurance is available through the credit union even if the insured did not get an auto loan from the credit union. We regret the error.
Fall 2018 | Volume 44, Issue 3
Paul Ehlert Derrell Krebs
President & Chief Executive Officer
Secretary/Treasurer & Chief Financial Officer
Blake Lovelace Senior Executive Vice President Min Choi
Executive Vice President & Chief Marketing Officer
Laura Popp
Director of Advertising
Germania Farm Mutual Insurance Association 507 Highway 290 East Brenham, Texas 77833 800-392-2202 www.germaniainsurance.com
Contributors: Lisa Trow
Editor Shane Butzow Designer Julia Rosenfeld Contributing Writer
Germania Today (USPS 086230) Published quarterly by Germania Farm Mutual Insurance Association Postmaster: Send address changes to Germania Today at P.O. Box 645, Brenham, TX 77834. Periodical postage paid at Brenham, Texas and additional mailing offices. Subscription price is 50 cents per year included in yearly premium.
FALL 2018 | 3
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