Before the unexpected happens, make sure you’re covered.
Accidents happen. Things break. And it can be costly even when it’s not your fault and you think you have the right coverage. With added protections that cover mechanical breakdowns, offer GAP insurance for a new car, and loan protection coverage, we can give you peace of mind and help you hold on to more of your money when things don’t go as planned. Find the right protection for your circumstance to ensure you’re covered.
GAP
GAP insurance can provide valuable protection during the early years of your car’s life if you have a loan or a lease. If a loss occurs, GAP insurance will pay the difference between the actual cash value of the vehicle and the current outstanding balance on your loan or lease. GAP Insurance protects your vehicle lease or loan. Sometimes it will also pay your regular insurance deductible.
If your vehicle has been totaled by accident, theft, fire, flood, tornado, vandalism, or hurricanes, your insurance company typically pays the actual cash value. That may be less than its actual retail value. It is often considerably less than the actual amount you still owe on your loan or the amount due for a lease payoff.
The difference between your insurance deductible and the loss from this financial shortfall is the “gap” you can be left owing.
How a "GAP" occurs (using fictitious numbers):
- You purchase a car that costs $25,000 and you drive it off the lot
- After paying the down payment, you owe $24,000 in car payments over 5 years (0% interest loan = $400 car payments)
- You purchase physical damage insurance (comprehensive and collision) with a $500 deductible to protect you against damages and loss
- You have an accident while you are still upside down on your loan or lease (“Upside down” means owing more on a car than it’s worth) and your vehicle is totaled
- The insurance company determines that the actual cash value of the car is only $22,000, but at the time of the loss you still owe $23,500
- GAP insurance should pay the difference plus your deductible totaling $2000. (Not all GAP policies pay the deductible)
Here are the line items:
- Loan Payoff at the time of accident: $23,500
- Vehicle’s actual value at the time of accident: $22,000
- Your deductible: $500
- Physical Damage Insurance Company pays: $21,500 ($22,000 minus $500 deductible)
- GAP insurance pays the difference between what is owed and what the Physical Damage Insurance Company pays (plus your deductible): $2000
Typically a new car is worth approximately 30 percent less in 3 months than the day it was purchased! In our example above, if you owned the car for 3 days, had physical damage coverage and the car was totaled, you could owe 20% to 30% of the $24,000 ($4,800 to $7,200 out of your pocket) even though you purchased “full coverage.”
Car owners often assume that if their car is totaled, it will be replaced at the amount they paid, or at least the amount they owe. This is not so. Many car insurance companies offer a GAP option (Loan/Lease Gap Insurance) as an optional coverage that is available with physical damage coverage.
Remember these possible exclusions/policy rules:
- Maximum Limit of Loss: $50,000
- A GAP claim settlement may not cover the entire gap due, when your loan’s Original Amount Financed exceeds 150% of MSRP (new vehicle) or NADA Retail Value (used vehicles
- The claim settlement does not cover late charges or other penalties due to your lender
- Your loan amount financed must be less than or equal to $100,000
- Your loan term must not be greater than 84 months
- The loan must not have a balloon payment due at the end of the term
Comment Update: Your situation where you left the dealership and only have the car for 15 minutes is the perfect scenario where GAP insurance applies. The car isn’t worth the value you paid for it; therefore, your insurance company will only give the “cash value” of the car. The other person is likely responsible for all the damages, but if their company doesn’t give you full value, then GAP insurance would pay the difference and likely go after the liable party.
Mechanical Breakdown
When buying any vehicle there is always a chance of having a mechanical breakdown. These breakdowns can be very expensive to repair. With a vehicle service contract from Vision Warranty Corporation, members can add protection against the unexpected high cost of vehicle repairs – sometimes eliminating the cost altogether.
All plans cover ordinary wear that exceeds the manufacturer’s published tolerances on covered components. Regardless of the number of repairs, only one deductible is paid per visit.
Benefits included in all plans:
-
-
- Roadside Assistance Services Including: Towing/wrecker service, Gasoline delivery, flat tire change, battery-jump service, lockout services, and concierge services
- Rental Car Reimbursement: Payments are limited to the actual rental cost not to exceed $35.00 per day, and not to exceed seven (7) days.
- Trip Interruption: Reimbursement for meals and lodging when a covered failure occurs more than 100 miles from home not to exceed $100 per day, and not to exceed three (3) days.
- Manufacturer’s Deductible Reimbursements: if a part is replaced under the manufacturer’s warranty and that same part is covered under this contract, we will pay the deductible that the manufacturer charged up to a $100.00 maximum.
-
| Policy | Coverage |
|---|---|
| Level One | Engine, Transmission, Drive Axle |
| Level Two | Engine, Transmission, Drive Axle, Brakes (ABS and Non ABS), Air Conditioner, Steering, Suspension, Fuel, Electrical |
| Level Three | This is top coverage for a vehicle that covers items listed in previous plans, along with all other parts on a vehicle except those listed in exclusions in the service contract. Vehicles newer than 11 years old, with less than 100,000 miles on the odometer at the time of the contract’s purchase, will qualify for this coverage only. |
Optional coverages such as commercial use, snow plow, lift kit/tire modifications, and total loss refund are available. Please speak to a loan officer for more details.
Loan Protection Coverage
A loan is a commitment, a promise you’re expected to keep. Life is full of uncertainties. Loan protection helps eliminate the worry associated with making your loan payments when those unexpected events occur that can cause a financial loss to your family. Your loan payment may be canceled without penalty, added interest, or reported as delinquent to the credit bureau when a protected event occurs.
Covered Events
A variety of life events can be covered that will help eliminate the worry of financial loss.
-
-
- Death: Cancels outstanding loan balance up to $50,000
- Involuntary Unemployment: Cancels up to twelve consecutive monthly loan payments per occurrence up to $1,000 per month
- Disability: Cancels up to twelve consecutive monthly loan payments per occurrence up to $1,000 per month
- Unpaid Family Leave: Cancels up to three consecutive monthly loan payments per occurrence up to $1,000 per month
-
Programs Offered
We offer five programs for you to choose from, one of which will fit your particular life situation.
| Program | Coverage |
|---|---|
| Plan I | Death, Disability, Involuntary Unemployment, Unpaid Family Leave |
| Plan II | Disability, Involuntary Unemployment, Unpaid Family Leave |
| Plan III | Death, Involuntary Unemployment, Unpaid Family Leave |
| Plan IV | Death, Disability, Unpaid Family Leave |
| Plan V | Death |
Eligibility
There are eligibility requirements, conditions, and exclusions that apply to this program. For complete details, speak with one of our loan officers. We can provide you with our Loan Protection Agreement which provides complete details and answers to the most frequently asked questions about our product.
Skip-A-Payment
The unexpected is part of life. When it happens, our Skip-a-Payment benefit affords members to defer a payment until the end of the loan. To be eligible, the member account must be in good standing with at least 12 months of payment on the loan and haven’t exceeded the number of skips permissible for the life of the loan. This benefit can be applied to auto, personal, share/certificate, and recreational loans. A $35 fee will be applied and all borrowers must sign for the benefit to take effect. Skipped payments process within 24 hours. All eligibility requirements apply.
Youth Savings – DP’s Kids Club
For kids ages 12 and under
Parents – want to help your children learn to manage money? Then bring your children — age 12 and under — to any DoverPhila branch and sign them up for their very own savings account through DP’s Kids Club.
By joining the club, children learn to manage money early and reap the special rewards this account offers.
Joining is easy
Simply bring your child, their social security card, and a deposit of $5 (or more) to any of our five convenient locations and activate their account. It’s that easy.
If your child already has a DoverPhila savings account, you can sign your child up for membership in DP’s Kids Club. No additional deposit is required. (Note: If you currently have a custodial account, you will need to set up a separate account for the kids club.)
DP's Kids Club benefits
Here are just some of the benefits that come with DP’s Kids Club membership:
- Fun Gifts– Kids receive a postcard in the mail each quarter with an incentive to save their money.
- Membership Card – The official club membership card – kids love them!
- Games & Contests – Quarterly contest with cash prizes.
- Quarterly Newsletter – Credit union news and money facts tailored specifically to kids.
- Special Events – Celebrate summer at the annual DP’s Kids Club Day (always the first Saturday in August) that includes games, contests, and refreshments.
- Financial Tools for Kids – Education is the key to success. Club activities and tools are designed to help kids learn money management.
- Access to Banzai – An award-winning, online financial literacy program that allows members to discover real-world finances through “learning by doing.”
- And More!
Early education is crucial to adopting lifelong money management skills. Working together we can help children learn to successfully manage their money. By joining the kids club, kids are given the opportunity to learn the value of saving money while also having fun.
When your child reaches the age of 13, their financial education really kicks into gear. Their membership will automatically be converted to a DP Savers Club membership.
Not-For-Profit
As a not-for-profit credit union, we appreciate the unique governing structure of not-for-profits, their need to keep expenses in check, and desire to show results for the programming.
For that reason our not-for-profit checking account offers all of the great features and benefits of our business checking account, but without the monthly service charges (waived for qualified 501c3 not-for-profit organizations).
Features of our Not-For-Profit Checking include:
-
-
- No minimum balance
- No monthly service charges
- Free overdraft protection from your savings account
- Unlimited check writing
- Online banking
- Mobile banking
- Digital check images through online banking
- eAlerts
- ATM/Debit card access
-
While your first order of checks needs to be made through a DoverPhila branch location, you can reorder checks quickly and easily online.
GAP
GAP insurance can provide valuable protection during the early years of your car’s life if you have a loan or a lease. If a loss occurs, GAP insurance will pay the difference between the actual cash value of the vehicle and the current outstanding balance on your loan or lease. GAP Insurance protects your vehicle lease or loan. Sometimes it will also pay your regular insurance deductible.
If your vehicle has been totaled by accident, theft, fire, flood, tornado, vandalism, or hurricanes, your insurance company typically pays the actual cash value. That may be less than its actual retail value. It is often considerably less than the actual amount you still owe on your loan or the amount due for a lease payoff.
The difference between your insurance deductible and the loss from this financial shortfall is the “gap” you can be left owing.
How a "GAP" occurs (using fictitious numbers):
- You purchase a car that costs $25,000 and you drive it off the lot
- After paying the down payment, you owe $24,000 in car payments over 5 years (0% interest loan = $400 car payments)
- You purchase physical damage insurance (comprehensive and collision) with a $500 deductible to protect you against damages and loss
- You have an accident while you are still upside down on your loan or lease (“Upside down” means owing more on a car than it’s worth) and your vehicle is totaled
- The insurance company determines that the actual cash value of the car is only $22,000, but at the time of the loss you still owe $23,500
- GAP insurance should pay the difference plus your deductible totaling $2000. (Not all GAP policies pay the deductible)
Here are the line items:
- Loan Payoff at the time of accident: $23,500
- Vehicle’s actual value at the time of accident: $22,000
- Your deductible: $500
- Physical Damage Insurance Company pays: $21,500 ($22,000 minus $500 deductible)
- GAP insurance pays the difference between what is owed and what the Physical Damage Insurance Company pays (plus your deductible): $2000
Typically a new car is worth approximately 30 percent less in 3 months than the day it was purchased! In our example above, if you owned the car for 3 days, had physical damage coverage and the car was totaled, you could owe 20% to 30% of the $24,000 ($4,800 to $7,200 out of your pocket) even though you purchased “full coverage.”
Car owners often assume that if their car is totaled, it will be replaced at the amount they paid, or at least the amount they owe. This is not so. Many car insurance companies offer a GAP option (Loan/Lease Gap Insurance) as an optional coverage that is available with physical damage coverage.
Remember these possible exclusions/policy rules:
- Maximum Limit of Loss: $50,000
- A GAP claim settlement may not cover the entire gap due, when your loan’s Original Amount Financed exceeds 150% of MSRP (new vehicle) or NADA Retail Value (used vehicles
- The claim settlement does not cover late charges or other penalties due to your lender
- Your loan amount financed must be less than or equal to $100,000
- Your loan term must not be greater than 84 months
- The loan must not have a balloon payment due at the end of the term
Comment Update: Your situation where you left the dealership and only have the car for 15 minutes is the perfect scenario where GAP insurance applies. The car isn’t worth the value you paid for it; therefore, your insurance company will only give the “cash value” of the car. The other person is likely responsible for all the damages, but if their company doesn’t give you full value, then GAP insurance would pay the difference and likely go after the liable party.
Mechanical Breakdown
When buying any vehicle there is always a chance of having a mechanical breakdown. These breakdowns can be very expensive to repair. With a vehicle service contract from Vision Warranty Corporation, members can add protection against the unexpected high cost of vehicle repairs – sometimes eliminating the cost altogether.
All plans cover ordinary wear that exceeds the manufacturer’s published tolerances on covered components. Regardless of the number of repairs, only one deductible is paid per visit.
Benefits included in all plans:
-
-
- Roadside Assistance Services Including: Towing/wrecker service, Gasoline delivery, flat tire change, battery-jump service, lockout services, and concierge services
- Rental Car Reimbursement: Payments are limited to the actual rental cost not to exceed $35.00 per day, and not to exceed seven (7) days.
- Trip Interruption: Reimbursement for meals and lodging when a covered failure occurs more than 100 miles from home not to exceed $100 per day, and not to exceed three (3) days.
- Manufacturer’s Deductible Reimbursements: if a part is replaced under the manufacturer’s warranty and that same part is covered under this contract, we will pay the deductible that the manufacturer charged up to a $100.00 maximum.
-
| Policy | Coverage |
|---|---|
| Level One | Engine, Transmission, Drive Axle |
| Level Two | Engine, Transmission, Drive Axle, Brakes (ABS and Non ABS), Air Conditioner, Steering, Suspension, Fuel, Electrical |
| Level Three | This is top coverage for a vehicle that covers items listed in previous plans, along with all other parts on a vehicle except those listed in exclusions in the service contract. Vehicles newer than 11 years old, with less than 100,000 miles on the odometer at the time of the contract’s purchase, will qualify for this coverage only. |
Optional coverages such as commercial use, snow plow, lift kit/tire modifications, and total loss refund are available. Please speak to a loan officer for more details.
Loan Protection Coverage
A loan is a commitment, a promise you’re expected to keep. Life is full of uncertainties. Loan protection helps eliminate the worry associated with making your loan payments when those unexpected events occur that can cause a financial loss to your family. Your loan payment may be canceled without penalty, added interest, or reported as delinquent to the credit bureau when a protected event occurs.
Covered Events
A variety of life events can be covered that will help eliminate the worry of financial loss.
-
-
- Death: Cancels outstanding loan balance up to $50,000
- Involuntary Unemployment: Cancels up to twelve consecutive monthly loan payments per occurrence up to $1,000 per month
- Disability: Cancels up to twelve consecutive monthly loan payments per occurrence up to $1,000 per month
- Unpaid Family Leave: Cancels up to three consecutive monthly loan payments per occurrence up to $1,000 per month
-
Programs Offered
We offer five programs for you to choose from, one of which will fit your particular life situation.
| Program | Coverage |
|---|---|
| Plan I | Death, Disability, Involuntary Unemployment, Unpaid Family Leave |
| Plan II | Disability, Involuntary Unemployment, Unpaid Family Leave |
| Plan III | Death, Involuntary Unemployment, Unpaid Family Leave |
| Plan IV | Death, Disability, Unpaid Family Leave |
| Plan V | Death |
Eligibility
There are eligibility requirements, conditions, and exclusions that apply to this program. For complete details, speak with one of our loan officers. We can provide you with our Loan Protection Agreement which provides complete details and answers to the most frequently asked questions about our product.
