Skip to Content

Auto Protection GAP & Mechanical Breakdown


Our car. It's a pretty big part of our lives; it gets us to work, it chauffeurs the kids around, it takes us out for a night on the town. But let's face it, they're not cheap - so why not protect your investment? Luckily, it's not that hard, thanks to these:

Guaranteed Asset Protection (GAP)1

hands holding toy car gap insurance

The most dangerous time to drive has nothing to do with hours of the day, or months of the year. It's the first few years you own your vehicle, when your loan debt is still high. Say your car's stolen, or it's in an accident and can't be repaired - you could owe thousands more than your insurance covers. GAP covers that insurance "gap" for you making up the difference between what insurance covers and the amount you owe. And GAP's not just for cars, trucks and SUVs - it's also available for motorcycles, travel trailers, watercraft and motorhomes.2

Here's how it all works ... say you owe $14,000 on your vehicle, and it's damaged beyond repair in an accident. After subtracting your deductible, your insurance company awards you $11,000 for the damage. Where does that leave you?

Without GAP - you'd have to pay the remaining $3,000 loan balance out-of-pocket:
Your loan balance$14,000
Your insurance pays$11,000
YOU pay the remaining loan balance$3,000 (out-of-pocket)
With GAP - same scenario as above, but instead of out-of-pocket expenses, your remaining loan balance gets paid ... PLUS you get an additional $1,000 to finance a replacement vehicle:
Your loan balance$14,000
Your insurance pays$11,000
GAP pays remaining loan balance$3,000
Your out-of-pocket expense$0
GAP additional benefit (for replacement)$1,000!

†If new loan financed through First Entertainment within 90 days of settlement. May also cover the depreciation suffered on your vehicle for the first 3 Years up to $3000.

Seems pretty clear that GAP not only closes the gap, but it puts you out ahead! visit any branch or call 888.800.3328, ext. 4031, to speak with our Consumer Lending Department.

woman on phone calling mechanical breakdown

Mechanical Breakdown Insurance (MBI)1

The average new car is out of warranty in just two and a half years, and with advanced electronics and "integrated systems," repairing or replacing parts is more expensive than ever ... and that's not even considering labor costs! Unfortunately as time goes on, the likelihood of mechanical failure of your vehicle is inevitable.

However MBI, also known as Mechanical Repair Coverage (MRC), helps you protect yourself against the expense of future costly repairs.3 The total cost of MBI for new and pre-owned vehicles is often far less than the cost of a single repair! Pay for MBI once, and in most cases you'll not have to pay anything more than a small deductible should a breakdown occur.

Protecting your investment is more than just fixing things, that's why MBI includes the following additional coverage benefits:4

  • 24-Hour Roadside Assistance - Towing, lost key, lock-out and other road services
  • Rental Vehicle Assistance - Coverage for alternate transportation expenses
  • Tire Protection - Repairs and/or replacement
  • Trip Interruption - Reimbursement for meals and lodging up to three days if you're stranded because of covered breakdown more than 100 mi. away from home.

You don't need a new car to get new-car peace of mind! To learn more about MBI, visit any branch, or call 888.800.3328, Option 3, to speak with our Consumer Lending Department.

1 GAP and MBI/MRC are considered insurance coverage in some states. MBI/MRC coverage vary and may not be available depending on the provider and/or plan chosen.

2 Your purchase of GAP is optional. Whether or not you purchase GAP will not affect your application for credit or the terms of any existing credit agreement you have with First Entertainment Credit Union. There are eligibility requirements, conditions, and exclusions that could prevent you from receiving benefits under GAP. You should carefully read your contract for a full explanation of the terms.

3 © CUNA Mutual Group, All Rights Reserved 2021 | MEMBER’S CHOICE ® Mechanical Repair Coverage is made available to you by CUNA Mutual Insurance Agency, Inc., and is powered by ForeverCar. It is insured by Virginia Surety Company, Inc. | MRC-3489303.2-0321-0423

4 Additional coverage details dependent upon your MBI/MRC coverage plan. Please contact the Credit Union for complete details.