Benefits of GAP and MMP

Services | 06/21/24
Woman looking at a car crash

When it comes to your vehicle, there are inevitable challenges every driver has to face. Perhaps it’s unforeseen mechanical issues, theft, or unexpected depreciation. Regardless of the cause, these things are not only out of our control, but they can also be expensive to deal with. Luckily at Ascend, our Guaranteed Asset Protection (GAP) and Major Mechanical Protection (MMP) serve as comprehensive solutions to safeguard your vehicles and provide financial stability.

What is GAP?
Guaranteed Asset Protection (GAP) is a type of insurance coverage that protects you if your vehicle is totaled or stolen and you owe more on your loan than the vehicle’s current market value. According to Kelley Blue Book, new vehicles lose about 20% of their value within the first year.

Key Benefits of GAP:

Financial Security
In the event your vehicle is declared a total loss after an accident or theft, it’s likely the standard insurance policy will fall short in covering your entire loan balance. GAP insurance covers the difference between the actual cash value of your vehicle and the remaining balance on your auto loan, meaning you won’t be left paying off a loan for a car you no longer have.

Peace of Mind
Knowing that you’re protected against the depreciation of your vehicle provides peace of mind. You can drive with confidence knowing your auto loan won’t be a burden if an unexpected accident or theft occurs.

Affordable Protection
GAP insurance is typically a small addition to your monthly loan payment, making it a cost-effective way to protect your investment. The coverage it offers far outweighs the minimal cost.

What is MMP?
Major Mechanical Protection (MMP) is an extended warranty that covers the cost of repairs for significant mechanical issues that may occur after the manufacturer’s warranty expires. This protection ensures that your vehicle remains in excellent working condition without the financial burden of unexpected repair costs.

Key Benefits of MMP:

Comprehensive Coverage
MMP covers a wide range of major mechanical components, including the engine, transmission, drivetrain, and more. This ensures that you’re protected against expensive repair bills that can arise from mechanical failures.

Budget Protection
Unexpected repairs can strain your budget. The total cost of MMP is often far less than the cost of a single repair. Pay for this protection once, and in most cases you will not have to pay a deductible should a breakdown occur. MMP helps you avoid large, unplanned expenses, allowing you to maintain your financial stability and keep your budget on track.

Flexible Options
We offer different levels of MMP to suit your needs and budget. Whether you drive a new or used vehicle, we have a plan that’s right for you. Your coverage may include all or some of the following benefits*:

  • Comprehensive repair coverage
  • 24-hour roadside assistance
  • Lost key and lockout assistance
  • Emergency tire repair
  • Rental car reimbursement
  • Trip interruption expense reimbursement
  • Flexibility when getting repairs done — can be used at most licensed repair facilities
  • MMP transfers to a new owner, which adds to the resale value of your vehicle

*coverages vary

How to Get Started
Enrolling in GAP or MMP with Ascend is simple. Our knowledgeable representatives are ready to answer any questions and guide you through the process. Contact us today or visit your nearest branch to learn more about how these protections can benefit you.

Protecting your vehicle is crucial to financial security, and Ascend Federal Credit Union is here to help. With Guaranteed Asset Protection and Major Mechanical Protection, you can drive with confidence knowing that your vehicle and finances are secure. Let us provide you with the peace of mind you deserve. For more vehicle tips, check out our blog on tips for shopping for an auto loan.

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