• May 21, 2024
  • Posted by General Electric Credit Union
  • 4 read

3 Crucial Steps After Taking Out a Car Loan

You’ve got a new ride, but don’t take your foot off the gas just yet! There are a few “errands” to take care of that will help you achieve a smooth transition now that you have an auto loan. 

Your post-car purchase to do list 

Get an insurance policy 

Insurance companies take the car model into account when creating a price quote. For this reason, those with existing insurance must update their policy after getting a new car. Another option is to switch insurance providers altogether. Since you must change coverage, it may be a good time to price shop and see what else is available. 

First-time car buyers must also secure insurance. If this is your situation, it’s important to verify the policy you select meets the mandatory insurance requirements for your state. You can view Ohio, Indiana, and Kentucky’s requirements online. 

Some lenders require you to submit proof of insurance to avoid CPI, or Collateral Protection Insurance. This is a type of insurance that covers the lender's financial interest in a vehicle if the borrower's insurance lapses or is insufficient—such as in the event an accountholder doesn’t verify their insurance information after taking out a loan. It's considerably more expensive then regular insurance. If your lender requires proof of insurance, be sure to submit it soon after driving your car off the lot. 

  • General Electric Credit Union (GECU) requires full coverage on any vehicle that we finance with a maximum deductible of $1,000. Once you've worked with your insurance company to update the policy with GECU as your lienholder, they'll typically mail a copy to GECU. If we notify you that we haven't received your proof of insurance, you can submit it online

Solidify your payment strategy 

Putting some forethought into your payment strategy will help you manage your new auto loan more efficiently. Setting up automatic payments is the most straightforward way to ensure you’re never late on a loan payment. The best banks and credit unions allow you to opt in to account alerts so you always know when a payment is coming due! 

Deepen your relationship

Are you new to the financial institution you financed your car through? If so, it may pay off to familiarize yourself with the bank or credit union and get a better sense of who they are and what else they can offer you. You may be pleasantly surprised by the array of deposit accounts or additional borrowing opportunities you have access to. 

GECU offers so much more than great auto loans. If you financed your ride through us but don’t have any additional accounts, we’re excited to expand our relationship with you! Set up automatic payments to your loan from our Simply Free checking account,1 give your balance a boost with our Thrive Money Market Account,2 and earn up to $350 in debit card rewards through our Round-Up program.3 You’ll quickly see why we’ve been voted the Best Credit Union in Cincinnati seven years in a row! 

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