Protecting Your Financial Future: Insurance Products That Make Sense
Summer is the perfect time to hit the road with your family, explore Wisconsin's beautiful lakes with your boat, or finally take that RV trip you've been planning. But before you head out on your next adventure, have you considered whether you're fully protected financially if something goes wrong?
While no one wants to think about accidents or theft, the reality is that vehicles – whether your daily driver or that recreational boat – represent significant investments. The good news? There are smart, affordable insurance products designed specifically to protect you from unexpected financial losses. Let's explore two coverage options that could save you thousands of dollars and give you peace of mind.
The Hidden Risk: When Insurance Isn't Enough
Picture this scenario: You financed a new truck for $35,000 last year. This summer, while driving through central Wisconsin, another driver runs a red light and totals your vehicle. Your auto insurance company evaluates the claim and determines your truck is now worth $28,000 due to depreciation.
Here's the problem – you still owe $32,000 on your loan. Even with insurance paying out $28,000, you're responsible for the remaining $4,000. That's $4,000 you have to pay out of pocket for a vehicle you can no longer drive.
This scenario isn't uncommon. In fact, most vehicles lose value faster than loan balances decrease, especially in the first few years. This gap between what you owe and what your vehicle is worth can create a serious financial burden when you least expect it.
GAP Insurance: Your Financial Safety Net
What is GAP Insurance?
GAP (Guaranteed Asset Protection) insurance bridges the gap between what you owe on your loan and what your insurance company pays out if your vehicle is declared a total loss. This coverage applies to cars, trucks, motorcycles, boats, RVs, and other recreational vehicles.
How GAP Insurance Protects You
Using our earlier example, if you had GAP insurance, it would cover that $4,000 difference between your insurance payout and loan balance. You'd walk away from the accident financially whole, without having to pay for a vehicle you can no longer use.
Why Choose GAP Insurance Through Your Credit Union?
At Public Service Credit Union, our GAP insurance offers exceptional value:
Comprehensive coverage up to 150% of your vehicle's value
Significant savings – approximately $700 less than average GAP policies
Available for all vehicle types including cars, trucks, boats, and RVs
Simple claims process with personalized service
Who Should Consider GAP Insurance?
GAP insurance makes sense if you:
Financed more than 80% of your vehicle's purchase price
Chose a longer loan term (60+ months)
Bought a vehicle that depreciates quickly
Made a small down payment
Own recreational vehicles used seasonally
Beyond the Collision: Auto Deductible Reimbursement
Even minor accidents can strain your budget. When you need to file an insurance claim, you're responsible for paying your deductible before repairs begin. For many Wisconsin families, a $500 or $1,000 deductible represents a significant unexpected expense.
How Auto Deductible Reimbursement Works
Our Auto Deductible Reimbursement Program helps offset this cost by reimbursing you for your auto insurance deductible when you need to file a claim. Here's what you need to know:
Coverage up to $500 per occurrence
Two claims per year maximum
Applies to comprehensive and collision claims
Helps with unexpected repair costs
This program is especially valuable during summer months when increased driving and recreational activities can lead to higher accident rates.
“If you don’t have adequate emergency savings to cover unexpected vehicle expenses, these insurance products can prevent financial stress.”
Summer Driving: Increased Risks and Smart Preparation
Summer brings unique driving challenges that increase your risk of accidents and claims:
Higher Traffic Volume Wisconsin's tourist season means more vehicles on roads, especially around lakes and recreational areas. More traffic increases the likelihood of accidents.
Weather-Related Hazards Summer storms can bring hail, flooding, and falling trees. These weather events often result in comprehensive insurance claims.
Increased Teen Driving With school out, teenage drivers spend more time on the road, statistically increasing accident rates during summer months.
Road Construction Summer is peak construction season, creating hazardous driving conditions and increased accident potential.
Recreational Vehicle Coverage: Protecting Your Summer Investment
If you own a boat, RV, ATV, or other recreational vehicle, you've made a significant investment in your family's enjoyment. These vehicles require specialized consideration:
Seasonal Use Challenges Recreational vehicles often sit unused for months, making them targets for theft or weather damage. When you do use them, it's typically in unfamiliar locations where accidents are more likely.
Higher Replacement Costs Recreational vehicles often have specialized parts and equipment that can be expensive to repair or replace. GAP insurance ensures you're not left paying for a totaled boat or RV while still making loan payments.
Transportation Risks Trailering boats and RVs increases accident risk due to the additional weight and size. If an accident totals both your tow vehicle and recreational vehicle, GAP insurance can protect you from dual financial losses.
Making Smart Insurance Decisions
When evaluating insurance protection, consider these factors:
Calculate Your Risk Look at your current loan balance versus your vehicle's current value. If you owe significantly more than the vehicle is worth, GAP insurance provides valuable protection.
Review Your Auto Policy Check your current deductible amounts. If a $500-$1,000 expense would strain your budget, deductible reimbursement can provide helpful financial relief.
Consider Your Usage Patterns Do you drive more during summer months? Take long trips? Use recreational vehicles in unfamiliar areas? Higher usage increases your risk exposure.
Evaluate Your Emergency Fund If you don't have adequate emergency savings to cover unexpected vehicle expenses, these insurance products can prevent financial stress.
Taking Action: Your Next Steps
Protecting your financial future doesn't have to be complicated or expensive. Here's how to get started:
For Current Members Contact our lending team to discuss adding GAP insurance to your existing auto or recreational vehicle loans. We can also provide information about our Auto Deductible Reimbursement Program.
For New Vehicle Purchases Ask about GAP insurance when applying for your next auto or recreational vehicle loan. It's most cost-effective when added at the time of purchase.
Questions About Coverage Our team can help you understand exactly what protection makes sense for your situation. Every member's needs are different, and we're here to provide personalized guidance.
Your Summer, Protected
This summer, as you enjoy Wisconsin's beautiful outdoors with your family, you can have confidence that your financial future is protected. Whether you're driving to the lake, pulling your boat to a favorite fishing spot, or taking that long-awaited RV adventure, smart insurance choices ensure that unexpected events don't derail your financial goals.
Don't let a gap in coverage create a gap in your budget. Take a few minutes to review your current protection and consider whether GAP insurance and auto deductible reimbursement make sense for your situation.
Ready to protect your financial future? Contact our lending team at loans@publicservicecu.org or call us at (715) 842-9865. We're here to help you enjoy summer with complete peace of mind.
GAP insurance and Auto Deductible Reimbursement Program details subject to program terms and conditions. Contact Public Service Credit Union for complete information and eligibility requirements.