Avoiding the Cost of Collateral Protection Insurance
As the lienholder on your vehicle and many others, we depend on comprehensive and collision insurance to protect our credit union from uninsured loss. The terms of your loan contract require this coverage for the life of the loan. Still, members sometimes allow their coverage to lapse.
When this happens, a collateral insurance policy is placed on the member's loan with the cost added to the monthly payments. Collateral protection insurance protects the credit union, but does not cover the borrower, and is no substitute for traditional insurance.
You can avoid the added cost of collateral protection insurance by keeping your insurance policy up to date. Should you receive a notice from our insurance department asking for proof of insurance, we encourage you to respond quickly to avoid any inconvenience.
Please make sure Michigan Educational Credit Union is listed as the loss/payee. The maximum deductible is $1000.00 for comprehensive and collision. If you are considering increasing your deductible beyond that, please contact an MECU loan officer for approval.
For members who've received letters or an email:
Protect Yourself With Proof of Insurance
If you have received a letter requesting proof of insurance on your auto loan, we encourage you to act quickly. The terms of your loan contract require you to have comprehensive and collision insurance for the life of your loan. Members without proof of current insurance on file will have the cost of a collateral protection insurance policy added to their monthly payment.
Briefly, collateral protection insurance protects the credit union from uninsured loss should your vehicle be damaged or lost. However, it does not cover you and is no substitute for traditional insurance.
MECU has partnered with a company to track and monitor the insurance status of our loans. If you have received a letter or email from myloaninsurance.com asking for proof of insurance, please send in your documentation as soon as possible to avoid any inconvenience.
Please note that any correspondence related to your insurance will have a P.O. Box with a Texas address for all delivery channels.
If you have any questions or need more information on collateral protection, please contact us immediately.
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Michigan Educational Credit Union
P.O. Box 924610
Fort Worth, TX 76124
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