Insurance

Unless you pay cash for your new car, or make a substantial down payment, there is a possibility your vehicle loan could be “upside down” the minute you drive off the dealer’s lot. An “upside down” loan means the amount borrowed exceeds the value of the asset itself. The value of a vehicle at any point in its life is predetermined by a depreciation schedule that takes into account make, model, year, equipment, and mileage.

Often, borrowers find themselves “upside down” through a combination of factors, including:

• Taking out a loan with an extended term- A longer loan term may mean lower payments, but it also means you build equity in the vehicle much slower.
• Depreciation – All vehicles depreciate, but some lose value much more quickly than others do. According to some estimates, certain vehicles lose as much as 30% of their value within the first three months.
• Putting little or no money down – If you finance all or nearly all the price of a vehicle, you could be upside down as soon as you drive home because of depreciation.
• Borrowing more than the purchase price – Borrowers who finance the tax, licensing fees, registration fees, or extras such as service plans and extended warranties, could find themselves upside down.

GAP Insurance can be purchased within 18 months of the conception of your loan.

To be eligible for GAP Insurance coverage through Rogue, you will need a Rogue Credit Union loan contract on your vehicle and comprehensive vehicle insurance.

There are several events that cause coverage to be terminated:

• Upon termination of the financial agreement
• Upon expiration of the maximum term limit in the wavier contract
• Upon cancellation of the GAP waiver contract
• Upon early payoff of the financial agreement by member
• Upon any claim/deficiency being paid
• If the vehicle is repossessed

There is no cancellation fee within the first 60 days of purchasing your policy. You will also receive a full refund if you cancel within this time-frame. 

Visit any Rogue Credit Union branch and a Member Service Representative will assist you in filling out the necessary paperwork to file a claim.

GAP claims must be submitted within 365 days from the date of total loss.

Many sick leave plans are only for a limited period of time - often just 30 days.   If you become disabled due to a covered illness or injury, optional Credit Disability Insurance may help make your loan payment to lessen you and your family’s worries about paying this loan during a time when your income may be reduced or lost and paying other household bills becomes challenging. 

Employer disability plans typically pay a percentage of your gross monthly income. This may be insufficient to maintain the income needed to pay all your debts and bills, and maintain your standard of living. Optional Credit Disability Insurance could help make your loan payments, up to the policy maximum, so your insurance and benefits through your employer can cover other living expenses. This could be beneficial to you during a time when your income may be reduced or lost.

Purchasing insurance to replace your income and protect your family from specific risks is one way to plan for the unexpected. Have you planned for this new debt obligation? Optional insurance coverage may supplement the life insurance you already have. Credit Life Insurance is designed to help reduce or pay off your eligible loan balance, up to the policy maximum, should an unexpected life event occur.

Your family’s current standard of living is likely based on two incomes. If one income is reduced or stopped, what impact would that have on your standard of living? Could there be financial difficulties if one income is stopped or reduced?

If a covered life event occurs, Credit Life and Credit Disability Insurance could help make or reduce your loan payments and help you maintain your current standard of living.

Have you considered or planned for what you would do in the event of an illness or injury that may prevent you from working for a period of time? Optional Credit Disability Insurance can help you in the event that you experience one of life's mishaps. In the event you become totally disabled due to a covered injury or illness, this loan payment protection coverage may help lessen you and your family’s worries about paying this loan during a time when your income may be reduced or lost and paying other household bills becomes challenging.

Talk with your lender about how to keep your monthly payment within a range you’re comfortable with. It is your choice to elect to add this optional coverage and decide what is right for your personal financial needs. 

The process is simple. Eligibility is determined and enrollment is completed at Rogue Credit Union. By making it a part of the loan processing, it is simple and quick to obtain.