Loan Coverage


Extended Vehicle Warranty with MRC

Extended Vehicle Warranty with MRC

The miles can add up but the repair costs don’t have to.

Most major car repairs occur after the factory warranty period ends.  Without an extended warranty like Member Choice Mechanical Repair Coverage (MRC), you could get stuck paying for unexpected and expensive repairs.  As a result, extended coverage for auto repairs has become a necessity.

HFD Federal Credit Union offers MRC coverage with affordable plans and coverage even if your vehicle loan is not with the credit union!

Benefits of the program:*

  • Good at any authorized repair facility in the U.S. or Canada
  • Rental reimbursement: up to $35 per day for 5 days (or 10 days for a parts delay) from day one.
  • 24-hour emergency roadside assistance: up to $100 per occurrence. Includes towing, battery jump-start, fluid delivery, flat tire assistance and lock-out service.
  • Travel expense reimbursement: up to $500 for lodging, food and rental expense when a covered breakdown occurs more than 100 miles from home.
  • Transferable: if you sell your vehicle privately, the coverage can be transferred for a fee, adding resale value and appeal.
  • Cancellable: receive a full refund within the first 60 days or a pro-rated refund thereafter less an administrative fee.
  • No out of pocket expense at time of mechanical repair after deductibles or non-covered repairs.


Try MRC with no obligation.

Download our Information Sheet, which includes enrollment for a free 60-day trial period!

*Program details may vary by state. Ask a Member Services Representative for details or receive a quote by calling 808.853.2355.







MEMBER’S CHOICE® Mechanical Repair Coverage is administered by Consumer Program Administrators, Inc. in all states except AK and CA, where coverage is administered by Virginia Surety Company, Inc., in WA, where coverage is administered by Automotive Warranty Services, Inc., in FL, LA , OK and WI, where coverage is administered by Automotive Warranty Services of Florida, Inc. (Florida License #60023) and in AZ, where the Obligor and Administrator is Consumer Program Administrators, Inc., all located at 175 West Jackson Blvd., Chicago Illinois 60604, 1-800-752-6265. This coverage is made available to you by CUNA Mutual Insurance Agency, Inc. In those states where MEMBER’S CHOICE® Mechanical Repair Coverage is offered as insurance (form MCCU-001-MBI) it is underwritten by Virginia Surety Company, Inc.  MRC-896721.1-0414-0516 © CUNA Mutual Group 2014, All Rights Reserved.

Guaranteed Asset Protection

Guaranteed Asset Protectionguaranteed_asset_protection_digital_display_2__media_file__da_2766229__2

If your vehicle is totaled or stolen, do you know what will happen to your loan payments?

That new vehicle may be your pride and joy but here’s a reality check. Unless you’ve bought an exceptionally in-demand model, a new vehicle typically depreciates about 22% in its first year; and at five years, a car has lost about 55 percent of its new-car value.1 Unfortunately, that doesn’t change the balance on your vehicle loan. For the time being, you have what’s called negative equity. You owe more than what the vehicle’s worth.

Years later, the balance on your loan and the vehicle value will even out. At that point, if your vehicle is totaled or stolen, your primary insurance will probably cover about what you owe. Until then, MEMBER’S CHOICE™ Guaranteed Asset Protection (GAP) can help cover the gap and help protect you from a potential loss of thousands of dollars.

People are extending their loan terms to lower their payments, which means they have negative equity risk even longer; 38% of auto loans in 2012 had terms of 5-1/2 to 6 years1 and the vast majority of consumers say they now plan on keeping cars for 10 years or more.2

You can deflect some of this risk by adding GAP to your vehicle loan. If your vehicle is stolen or totaled, GAP will help cancel the difference between the primary insurance settlement and what you may still owe. That could be a big relief if you need to come up with a down payment and replace a stolen or totaled vehicle immediately. With the rising cost of vehicles, fast depreciation and longer vehicle loan terms GAP may be a smart option to add helping to cover the negative equity gap.

1Edmunds, “How Long Should My Car Loan Be?”,, May 2013
2TIME, Business & Money, “Driver Consensus: It’s Silly to Upgrade Cars Every Couple of Years”,, July 2012


Your purchase of MEMBER’S CHOICETM Guaranteed Asset Protection (GAP) is optional and will not affect your application for credit or the terms of any credit agreement required to obtain a loan. Certain eligibility requirements, conditions, and exclusions may apply. Please contact your loan representative, or refer to the Member Agreement for a full explanation of the terms of GAP. If you choose GAP, adding the product fee to your loan amount will increase the cost of GAP. You may cancel the protection at any time. If you cancel protection within 90 days you will receive a full refund of any fee paid. You will receive additional information before you are required to pay the fee for this product.

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DPGAP-0613-8736, © CUNA Mutual Group 2014, All Rights Reserved.