Excess Wear and Tear Insurance for Leased Vehicles
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THE NEED
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Each lessor defines in the lease agreement what is normal wear and tear versus what is excess
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Lessors require the customer (lessee) to be responsible for excess wear and tear damage to their leased vehicle
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Damage assessed either by the dealer or independent third party inspectors upon vehicle return by the lessee at lease end
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Lessor bills the lessee and is left with an uncollectable charge-off if the lessee refuses to pay
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THE SOLUTION
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Excess Wear and Tear Insurance (EWT) is typically offered as an aftermarket product to lessees by the dealership F&I personnel; or it can be purchased on a "blanket" basis by the lessor and included in all leases.
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EWT waives the lessee’s responsibility for excess wear and tear damages at lease termination subject to policy conditions and exclusions.
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EWT protects lessees from excess wear and tear charges at lease termination, and protects lessors from the collections and customer satisfaction problems associated with those charges.
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| LESSOR BENEFITS |
LESSOR CAN CUSTOMIZE COVERAGE TO MEET THEIR NEEDS |
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Increases customer satisfaction with end of lease process
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Reduces excess wear and tear related write-offs and collection activities
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Voluntary program can generate fee income for the lessor and their dealers
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The blanket program differentiates the lessor and its lease products from the competition
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Maximum amount of coverage (usually $2,500 up to $5,000)
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Lessee deductible
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Blanket vs. Voluntary coverage
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Vehicle return policy (coverage available only 90 days before or after termination date OR coverage available upon any termination date)
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| DEALER BENEFITS |
CUSTOMER BENEFITS |
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Increases customer satisfaction with end of lease process
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Reduces excess wear and tear related write-offs and collection activities
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Voluntary program can generate fee income for the lessor and their dealers
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The blanket program differentiates the lessor and its lease products from the competition
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Provides a product to sell with leases or balloon notes
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Fee income increases dealer profit and dealer satisfaction
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Addresses the customer concern about fine print in lease contracts
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Contributes to customer satisfaction and repeat business
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*AMERICAN RISK SERVICES IS THE LARGEST PROVIDER OF EXCESS WEAR & TEAR PROTECTION IN THE UNITED STATES AND CANADA PROVIDING PROTECTION TO CAPTIVE AUTOMOTIVE FINANCE COMPANIES AND INDEPENDENT AUTO FINANCE COMPANIES
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**AMERICAN RISK SERVICES ONLY WORKS WITH INSURANCE COMPANIES RATED “A” (EXCELLENT) OR BETTER BY A.M. BEST COMPANY
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