By having Debt Protection Waiver (DPW) with UCU, we can help put money in your pocket to put down on your next vehicle and keep you on the road in the event of loss or theft, all while covering the depreciation of your vehicle. If you experience a total loss or an unrecovered theft, DPW provides a benefit equal to the difference between the MSRP or retail value of the vehicle at the time of coverage enrollment and the loan balance at the time of the total loss.

 

What are the benefits of DPW?

 

  • Gives you peace of mind that your positive equity is protected
  • In the event of a total loss, DPW may pay the difference between the vehicle's locked-in retail value and loan balance, protecting your equity investment
  • You won't lose the equity you have in the vehicle
  • 60-day 'free look' period, giving you time to make a decision
  • One convenient payment for DPW and your UCU Auto Loan

Who should opt in for DPW?

 

UCU member-owners who:

  • Finance 90% Loan to Value or less
  • Put money down
  • Trade in a vehicle with positive equity
  • Receive manufacturer or dealer rebates
  • Negotiate purchase below MSRP
  • Make accelerated loan payments

Interested in adding DPW to your UCU Auto Loan?

Chat with a member of our team today to see how DPW can protect your positive equity!

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How does Depreciation Protection Waiver (DPW) work?

Let’s say you purchase a vehicle for $33,500 and put money down on the vehicle, have a vehicle trade, dealer rebate, or negotiate a deal lower than MSRP, and takes out a loan for $29,800. This means you have a positive equity of $3,700. Depreciation Protection will protect that positive equity!

The “locked-in” value of the vehicle is the purchase price, which will remain the same, for DPW purposes, throughout the loan term. As the loan balance is paid down over time the “positive equity” will grow. 

So, if your vehicle was totaled, DPW pays the difference between the MSRP/Retail “locked-in” value at the time of the waiver purchase, and the amount of the outstanding loan balance at the time of loss – not to exceed the waiver addendum maximum ($5,000 or $10,000).

With DPW, the amount will be applied to the loan and you will still receive your settlement from your primary insurance company based on the actual cash value of the vehicle. This could leave money in your pocket to put down on your next vehicle!

 

What is the maximum DPW benefit I could receive?

The waiver benefit will not exceed the maximum benefit selected or the outstanding loan balance, whichever is less.

 

How is DPW different than GAP Insurance?

Depreciation Protection Waiver provides a new benefit to help protect the "equity" in your auto loan, compared to the “negative equity” protected by Guaranteed Auto Protection (GAP).

 

How much does DPW cost?

DPW pricing varies based on the coverage amount, and the vehicle price. Call us at 800.UCU.4510 or book an appointment with us if you're interested in DPW and we can provide a cost breakdown based on your vehicle's price.