We offer optional vehicle protection services for your peace of mind, including Guaranteed Asset Protection (GAP), Mechanical Breakdown Protection, and Debt Protection. If you have questions, contact us for more details.

Loan Protection

Today’s vehicles are more technically sophisticated than ever before, which can mean higher costs for consumers when repairs are needed. While manufacturer warranties are important, the protection they provide is limited. Our Mechanical Breakdown Protection policy helps protect you against unexpected repair costs that could arise long after your manufacturer warranty expires.

There are a couple different options you can choose from. In addition to the normal repair coverage each provides, our Mechanical Breakdown Protection policy supplements your manufacturer’s warranty, providing services such as towing, rental car reimbursement, roadside assistance and trip interruption coverage.

Option #1:  Easy Street factory type coverage

The most comprehensive factory coverage that protects your vehicle from breakdowns and provides protection for the technology in your vehicle, such as LCD screens and key fob coverage.

Eligible vehicles: 10 model years old and newer with 0 – 70,000 miles. Coverage up to 5 years / 100,000 miles, whichever comes first.

Option #2:  Main Street deluxe coverage

Coverage designed to provide peace of mind when purchasing a vehicle with higher mileage.

Eligible vehicles: 10 model years and newer with mileage of 70,001 – 140,000. Coverage for 36 months or 36,000 miles, whichever comes first.

Learn more and get a free quote

For complete terms and conditions, refer to your Service Agreement.

If your vehicle is involved in an accident or is stolen and subsequently declared a total loss, insurance will only pay the present value of the vehicle. Depending on your down payment, how quickly your vehicle has depreciated or any negative equity that was rolled into the original purchase, you could be facing a large out of pocket expense. That’s where Guaranteed Asset Protection (GAP) comes into play. GAP waives the difference between your primary insurance company’s settlement and the payoff of your loan balance up to a certain loan to value maximum, less exclusions or limitations that may apply.

Example:

  • Loan balance: $16,000
  • Insurance settlement: $12,000 (based on market value minus your deductible. GAP may also cover up to $1,000 of your deductible)
  • Loan balance remaining without GAP protection: $4,000
  • Loan balance remaining with GAP protection:  $0

GAP Advantage also provides these additional benefits:

  • $1,000 credit towards the financing of a replacement vehicle with Northwest Federal*
  • Auto deductible reimbursement – pays up to $500 per loss* (unlimited losses per year) when a loss is filed and paid by the auto insurance company for a covered auto

Get a GAP Advantage quote or speak with a loan officer to learn how you can roll GAP into your monthly vehicle payments for just a few dollars more per payment.

*Replacement vehicle must be financed within a limited time from the date of loss. Please consult a Northwest Federal representative for the availability and details of this benefit.

GAP is available in most, but not all states. GAP is subject to limitations and exclusions. Please consult a Northwest Federal financing representative to determine if your vehicle is eligible for GAP.

Life is unpredictable and unexpected events happen every day that could adversely impact both yourself and your family.  Northwest Federal offers Debt Protection which protects your family against these unexpected costs and ensures that loan payments are made on time. You will benefit from peace of mind knowing you and your family are protected along with your credit rating.

Depending on the plan you choose to purchase, Debt Protection cancels your loan balance or loan payment if a protected event occurs. Plans are available for closed end consumer loans (auto loans, personal loans).

Choose from these plan options:

  • Death – Give your family time to get back on their feet financially. This plan cancels the remaining loan balance as of date of death (up to $75,000).
  • Disability – Help avoid bills piling up as you try to regain your health and earning capacity. Use this benefit as a supplement to any disability coverage you may have at work. This plan cancels up to 12 payments per occurrence (aggregate maximum of $15,000 over life of loan, up to $1,000 per loan, per month).
  • Involuntary Unemployment – Ensure your loan payment will be taken care of as you search for new employment. This plan cancels up to 6 payments (aggregate maximum $15,000 over life of loan, up to $1,000 per loan, per month).

To learn more about our Death Protection, Disability Protection, or Involuntary Unemployment Protection plans, speak with a representative when applying for a loan.