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Excess Wear & Tear Insurance

Lease Excess Wear & Tear (EWT) Insurance

Lease Excess Wear & Tear Insurance (EWT) provides protection for damage that occurs to the leased automobile that is beyond the natural result of normal wear and aging, yet below damages typically covered by traditional auto physical damage policies.

American Risk Services has provided EWT coverage since 2004 and is one of the largest providers of EWT in the United States and Canada, providing coverage to many of North America’s manufacturer captive finance companies, as well as, independent auto finance companies and large dealership groups.

The Need:

As a part of all automobile lease contracts, the lessee is held responsible for any damage determined as “excessive” when the vehicle is returned at lease end. Unexpected events that happen to the vehicle throughout the life of the lease – minor dents and dings, windshield cracks, excessive tire wear, interior stains and burns – are all somewhat minor issues that can ultimately cost the lessee thousands of dollars. This obligation to the lessee has been shown to be a potential customer service issue and can lead to frustration when, at lease end, the lessee is in the market for a new vehicle and are faced with an unwanted charge for EWT damages. Knowledge of this potential liability detracts some from wanting to lease. The collection of EWT charges by the lessor can be difficult and time-consuming.

The Solution – Lease EWT:

ARS' Excess Wear & Tear Program waives the lessee's responsibility for excess wear and tear damages at lease termination (subject to policy conditions and exclusions). The program is typically offered as an aftermarket product to customers by dealerships, although it can also be purchased on a "blanket" basis by the Lessor and included in all leases.

There is a mutual benefit to EWT Insurance, as offered by American Risk Services-Lessors are protected from typical lease-end collections issues and customers are protected from excess wear and tear charges at lease termination.

The Benefits:

  • Provides “peace of mind” to the lessee that they will not face potential EWT charges at lease end
  • Increased customer satisfaction with the lease-end process
  • Easy and efficient claims processes
  • Reduced EWT related write-offs and collection activities
  • Program can generate fee income for Lessors and Dealers
  • Blanket program differentiates the Lessor and associated lease products from competition
  • Can be financed with the vehicle loan or lease
  • Contributes to customer satisfaction with repeat business
  • ARS exceeds the highest industry standards of security and compliance through SSAE-16 Certification (formerly SAS-70 II)
  • Coverage provide by insurance companies rated ‘A’ (Excellent) or better by the A.M. Best Company




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