GAP
The GAP PROTECTION program is designed to strengthen your customer satisfaction level while increasing your aftermarket income. In the early stages of a loan or lease, the value of any vehicle decreases more quickly than the finance contract payoff balance. In the event of a total loss or theft, the customer will likely receive an insurance settlement that is not sufficient to pay off their loan or lease balance. This difference- or gap-between the insurance settlement and the loan payoff can be a significant out-of-pocket expense to the customer.
WHAT DOES GAP PROTECTION PROVIDE YOUR DEALERSHIP?
First, your dealership gains another opportunity to earn fee income. Additionally, your customers will have greater satisfaction with their vehicle financing experience and thus with your dealership, particularly if they have a loss. This increased satisfaction results in repeat business and, in turn, increased automobile sales.
WHAT DOES GAP PROTECTION PROVIDE YOUR CUSTOMERS?
The GAP PROTECTION program protects your customers by paying the difference between a primary insurance settlement and the loan or lease payoff in the event of total loss or theft of their vehicle. It also provides reimbursement for their primary insurance deductible up to $1000.
HOW DOES THE PROGRAM WORK?
In the event of a covered loss when the customer has purchased GAP PROTECTION, the lender or lessor is paid the difference between the net payoff balance on the date of loss and the amount paid by the primary insurance carrier. This payment includes up to $1000 toward the primary insurance policy deductible.
UNDERWRITING GUIDELINES
WHAT DOES GAP PROTECTION PROVIDE YOUR DEALERSHIP?
First, your dealership gains another opportunity to earn fee income. Additionally, your customers will have greater satisfaction with their vehicle financing experience and thus with your dealership, particularly if they have a loss. This increased satisfaction results in repeat business and, in turn, increased automobile sales.
WHAT DOES GAP PROTECTION PROVIDE YOUR CUSTOMERS?
The GAP PROTECTION program protects your customers by paying the difference between a primary insurance settlement and the loan or lease payoff in the event of total loss or theft of their vehicle. It also provides reimbursement for their primary insurance deductible up to $1000.
HOW DOES THE PROGRAM WORK?
In the event of a covered loss when the customer has purchased GAP PROTECTION, the lender or lessor is paid the difference between the net payoff balance on the date of loss and the amount paid by the primary insurance carrier. This payment includes up to $1000 toward the primary insurance policy deductible.
UNDERWRITING GUIDELINES
- New and Used Vehicles are eligible for coverage.
- Model year limit of ten (10) years (current model year plus previous nine (9) model years.)
- Maximum term of loan/lease is 84 months.
- Coverage available on financial agreements up to $125,000.
- Coverage is limited to 150% of MSRP.