Loan Protection Insurance
Cost-Effective Coverage
We prioritize providing comprehensive loan and asset protection solutions to our valued members. By offering a range of discounted coverage options, we ensure your peace of mind while saving you money and alleviating potential financial burdens in the future. As a member, you have exclusive access to various protection plans. Explore what we offer below to discover the ideal coverage options that align with your needs as a borrower.
Guaranteed Asset Protection (GAP)
Don’t let a wrecked vehicle wreck your finances. If your vehicle is totaled or stolen, GAP coverage helps pay the difference between what your auto insurance covers and what you still owe on your loan.
Debt Protection
Create a safety net to help protect your family against the unexpected. Debt protection can cancel or reduce your loan balance in difficult life situations such as death, disability, or job loss.
Mechanical Repair Coverage
The miles can add up, but the repair costs don't have to. Cover the cost of unexpected vehicle repairs after your manufacturer’s warranty expires. As your vehicle ages, this coverage can help keep repair bills manageable.
Trustage® Home & Auto Insurance
How much could you be saving on your home and auto insurance? TruStage® provides reliable, flexible, and affordable insurance options for credit union members.
Frequently Asked Questions
Loan protection refers to optional coverage designed to help protect you financially if unexpected events affect your ability to manage loan-related expenses. ProFed offers several protection options to help safeguard your vehicle, finances, and family from unforeseen circumstances.
Life is unpredictable. Loan protection can help reduce financial stress by providing coverage for situations that may result in unexpected costs or financial hardship. These protection options can help you avoid significant out-of-pocket expenses while protecting your investment.
ProFed offers several protection solutions, including:
- Guaranteed Asset Protection (GAP)
- Debt Protection
- Mechanical Repair Coverage
- TruStage® Home & Auto Insurance
Each option is designed to provide a different layer of financial protection based on your needs.
Guaranteed Asset Protection (GAP) helps cover the difference between your vehicle's insurance settlement and the remaining loan balance if your vehicle is declared a total loss due to a covered accident or theft. GAP can help prevent you from owing money on a vehicle you no longer have.
GAP may be beneficial for borrowers who:
- Finance a large portion of their vehicle purchase
- Make a small down payment
- Choose longer loan terms
- Purchase a vehicle that may depreciate quickly
These situations can increase the likelihood of owing more than the vehicle's market value during the early years of the loan.
Debt Protection is an optional product that can help protect your family and finances if unexpected life events affect your ability to make loan payments. Depending on eligibility and coverage selected, Debt Protection may help reduce or cancel loan payments during qualifying events.
Debt Protection can provide valuable peace of mind by helping borrowers prepare for unforeseen circumstances. It is designed to create a financial safety net to protect both your loan obligations and your family's financial well-being.
Mechanical Repair Coverage helps protect you from the high cost of unexpected vehicle repairs after manufacturer warranty coverage may expire. This coverage can help reduce the financial impact of major repair expenses and keep your vehicle operating smoothly.
Many members choose Mechanical Repair Coverage for both new and used vehicles because repair costs can increase as vehicles age. Coverage may help you avoid large repair bills and better manage your transportation expenses.
Yes. ProFed members have access to TruStage® Home & Auto Insurance resources, which may help members explore insurance options and potential savings on their home and auto coverage.
In many cases, eligible protection products can be discussed during the loan application or financing process. A ProFed lending specialist can help explain available options and determine which coverages may fit your situation.
No. Loan protection products are optional. Members can choose whether to add coverage based on their individual financial goals, budget, and risk tolerance.
The best protection plan depends on your loan type, financial situation, vehicle ownership goals, and desire for added peace of mind. ProFed representatives can help you review available options and select coverage that aligns with your needs.
You can explore each coverage option in detail on the ProFed Loan Protection page or speak with a ProFed team member to discuss your loan and protection needs.