Ancillary auto products explained: protect your car investment

In a sprawling state like Arizona, having a vehicle is about more than just money; it’s about convenience and freedom. That can make your car, or at least your access to some wheels that work, priceless. After all the work you did to apply for a loan and get your vehicle, it can be a good idea to protect your purchase with ancillary products that keep you rolling, even in the toughest times. Here is a quick explanation of ancillary products for cars, as well as a few you might want to consider.

What are ancillary auto products?

Ancillary auto products are secondary services that can be purchased in addition to and in support of your car. Typically, these ancillary products for cars, like GAP insurance, an extended warranty, credit protection and more, aren’t included when you drive off the lot. They’re designed to give you that added layer of protection for your vehicle, keeping you on the road and your car in gear. You can also use them as tools to protect your wallet in the event of an emergency, preventing surprise expenses from draining your hard-earned savings.

Key types of ancillary auto products

Ancillary products for your car come in many shapes and sizes, and they’re typically customizable to suit your needs for protection. If you rely on your car on a daily basis, here are some options you may want to explore:

GAP Insurance

While “GAP” is actually an acronym for “guaranteed asset protection,” GAP insurance is appropriately named for how it fills holes in your car insurance policy. It’s most useful if your car is stolen or totaled in an accident, typically triggering a payout by your insurance company for your vehicle’s total value. The problem is, many owe more on their auto loan than their vehicle is worth, leaving a substantial – you guessed it – “gap.” GAP insurance covers that difference, minus your agreed-upon deductible for the policy, ideally giving you a blank slate when looking for your next car. 

Extended warranty

Once your car’s factory warranty expires, an extended warranty preserves your coverage for damaged or defective parts. That protects you from pricey repairs and standard part replacements that could otherwise drain your savings or worse yet, leave you without your wheels. Coverage under an extended warranty can vary widely, ranging from nearly all parts of your car to just your powertrain. It’s always a good idea to have a complete understanding of your plan and what it covers.

Credit protection

Credit protection is an ancillary product that protects you in certain circumstances when can’t make your payment. Different parts of a policy can cover you if you lose your job, become disabled or pass away. While credit protection may increase your monthly car payment, it can save your credit or your savings if you suddenly lose your job or need to allocate your money to other obligations. If you pass away during the life of your loan, you can also shield your family if they’re forced to swallow a potentially pricey car payment without your income.

Depreciation protection waiver

Depreciation is one of the hidden costs of owning a car, bringing the value of a new vehicle down with every minute and every mile. That’s where a depreciation protection waiver, or a DPW, comes in. It protects the equity you’ve already accrued when your car is stolen or totaled by filling the gap between your outstanding loan balance and its value when you purchased it. If your equity is higher than your loan balance, it might be a good idea to consider a DPW to protect the money you’ve already paid.

Auto insurance

If you hop in the driver’s seat and flip your car into “drive” each morning, you probably have car insurance, as it’s mandatory in Arizona. At the same time, you’re unique, and you deserve a car insurance plan that matches your needs. We help you save time and uncertainty when shopping for car insurance, empowering you with the confidence to make the right decision for you and your family.

Benefits of ancillary auto products

From the East Valley to the West Valley, from Saguaro Lake to the Grand Canyon, your car is critical in the Copper State. That’s why it’s so important to protect it with added layers and ancillary products. Options like GAP insurance or an extended warranty can give you not only financial protection but also peace of mind and confidence that those four tires will keep treading tar. You may even be able to extend or enhance your vehicle’s lifespan, whether that’s for you or for when you sell it for your next ride.

The finish line

Ancillary products for cars can help you keep your wheels spinning and make the most of your investment. Still, when looking at products like GAP insurance, extended warranties, credit protection and DPWs, it’s vital to ensure you know what you’re buying and what you need. What’s in your garage is probably different from what’s in your neighbor’s, and your needs will vary just as much. So, remember, wear your seatbelt, keep your eyes on the road and always make informed decisions with your major investments!