American Risk Services - GAP Insurance

GAP Insurance

THE NEED

Many times, vehicle values decrease at a faster rate than the unpaid balance of a loan or lease.
If a loan or lease customer did not make a large down payment, there may be a gap between what is owned and what the vehicle is worth.
If a vehicle is stolen or declared a total loss, the customer may be responsible for paying off a portion of the vehicle finance contract.

THE SOLUTION

GAP coverage is typically offered as an aftermarket product to loan or lease customers by the dealership or at point of sale.
Sometimes it is purchased on a “blanket” basis by the lessor and included in all leases.
GAP waives a portion or all of the remaining balance owed on the loan or lease after an insurance settlement is paid for a total loss of a vehicle.
GAP protects borrowers and lessees from unexpected expenses due to vehicle total loss, and protects lenders and lessors from the collections and customer satisfaction problems associated with those charges.

LENDER/LESSOR BENEFITS	LENDER/LESSOR CAN CUSTOMIZE COVERAGE TO MEET THEIR NEEDS
Provides customer peace of mind at the time of a traumatic experience. Reduces deficiency balance collection activities and write-offs. Voluntary program can generate fee income for the lender, lessor and their dealers The blanket program differentiates the lender and lessor and its products from the competition	Coverage limited or unlimited Lessee deductible coverage Blanket vs. Voluntary coverage

DEALER BENEFITS	CUSTOMER BENEFITS
Provides a value-added product to sell with loans and leases Fee income increases dealer profit and dealer satisfaction Addresses the customer concern about potential loss exposure Contributes to customer satisfaction and repeat business	Provides peace of mind at the time of a traumatic experience. Eliminates financial hardship. Can be financed with the vehicle loan or lease.

*AMERICAN RISK SERVICES ONLY WORKS WITH INSURANCE COMPANIES RATED “A” (EXCELLENT) OR BETTER BY A.M. BEST COMPANY