| || || |
Guaranteed Asset Protection (GAP)
If your customer’s vehicle is damaged beyond repair or stolen and not recovered, auto insurance coverage may not pay everything the customer owes on the vehicle. Typically, the amount paid is based on the vehicle’s actual cash value rather than the amount remaining on their loan or lease, which could be a difference of thousands of dollars.
This “negative equity” situation creates the opportunity for you to offer GAP to your customers. GAP provides credit protection to your customers in case their vehicle is stolen or damaged beyond repair. Plus, your dealership can improve your lender relations since GAP reduces loan defaults.
Zurich's GAP program provides these advantages for your dealership.
- High underwriting limits
GAP is available on loans and leases for terms up to 84 months and with loan and lease amounts up to $75,000.
- Liberal MSRP limits
The original amount financed can be up to 150% of the MSRP/NADA value before benefits are limited.
- Deductible covered
The customer receives credit for their insurance deductible up to $1,000 in calculating GAP benefits. (Auto insurance deductibles are not included in California due to a new law effective 1/1/2011.)
- Pays even if no auto insurance is in effect at the time of loss
(NADA book value replaces insurance settlement in GAP calculation.)
- No waiting period
Coverage begins immediately.
Additional Profit Opportunities
Note: products may not be available in all states
- Increased income opportunities -
with the addition of GAP to your product portfolio
- High sales penetration due to GAP’s low cost
- Better prospects for repeat vehicle sales –
since GAP eliminates negative equity