Missouri SB 398: New Legislation Increases Vehicle Protection Offerings for Missourians
As vehicle costs rise, consumers are seeking smarter ways to protect their finances. Missouri SB 398 expands access to high-value options beyond auto service contracts and GAP waivers by adding excess wear and tear for leases and protections for the diminished value of their car, giving drivers more control and confidence.
Missouri SB 398 expands vehicle protection plan options
GAP waivers and auto lease gap insurance help folks across the country—including Missouri—stay protected in the event of a total loss to their financed vehicle. Legislators are making progress toward increasing the protections made available to citizens to help them find a vehicle protection plan that works best for them.
Earlier this year, Missouri lawmakers did just that by enacting Missouri SB 398 , a new law that affords additional options for people looking to keep their household budgets safe. Missouri is now one of eight trailblazing states acting as early adopters of these new options for vehicle owners, adding them to existing statutes. State legislators gave Missourians more power over the policies that could keep them in a better financial position if an adverse event were to occur.
Provides New Coverage in Addition to GAP Waivers
Prior to Missouri SB 398, consumers had access to GAP waivers that help cover all or part of the remaining loan balance of a financed vehicle left over from the primary auto insurance payment when a new vehicle is totaled or stolen. With this new legislation, consumers have more options to protect their finances that fit a variety of situations.
These new, high-value offerings include excess wear and use protection on leased vehicles, as well as a portfolio of protections that help offset the loss in vehicle value through depreciation or damage that was repaired. For leases, the new coverage helps consumers cover the expense of exceeding the annual mileage restrictions and charges for excess wear and tear.
Expands Consumer Protection With Stronger Safeguards and Added Transparency
Importantly, robust consumer protections were codified into Missouri law, such as consumer product disclosures and requirements that assure providers are able to fulfill their promise to cover future benefits. The new law officially expands the financial protection suite available to consumers, joining other high-value products like auto service contracts and other motor vehicle protection products.
As Vehicle Costs Rise, Everyone Wins With Smarter Protection Plans
Taken together with car service contracts, GAP waivers, and auto lease gap insurance, these new optional offerings in Missouri help consumers get into their next vehicle in a better financial position than they would have otherwise. As modern technology makes vehicles more expensive, it’s never been more important for consumers to stay prepared in case a financial burden might come their way. By passing Missouri SB 398, Missouri legislators agreed that consumers having improved financial health is a true win-win-win for consumers, auto dealers, and lenders.
Looking Ahead: Nationwide Expansion of Vehicle Protection Plans
Consumers need more protection offerings to find a vehicle protection plan that works best for their situation. The Guaranteed Asset Protection Alliance is working to expand these offerings to other states throughout the U.S. Keep an eye on our news page to hear about helpful new laws in this area.