What types of insurance does your dealership offer to customers? There are standard auto insurance options, which you can provide for a fee to those buying a new or used vehicle who either don’t have current car insurance or want to switch providers. Commercial auto insurance is another necessity, should your company sell or lease commercial vehicles. However, there’s also another option that can be profitable to dealerships, as well as protective to customers: GAP insurance.
What is GAP insurance? How does it work? Keep reading for more details.
GAP Insurance
As the name implies, GAP insurance is designed to provide coverage for the “gap” in what a car is worth versus what you’re paying for it. The term stands for Guaranteed Asset Protection, and it helps car buyers from having to pay on a loan for a car that they can no longer drive.
How GAP Insurance Works
For example, you buy a car for $15,000 and choose the GAP coverage option. A year later, when your car is only worth $11,000 due to appreciation, you end up getting into an accident and totaling the vehicle. Your insurance company only gives you $11,000 because that’s what the car is worth. Due to the way auto loans work, where the payments go mainly to interest for the first few years, you still owe $13,900 on the loan. Once the loan company gets the settlement amount, you’ll have a balance of $2,900 to pay out of pocket.
This is where GAP insurance comes in to save the day. It will pay that extra $2,900 so that you don’t have to. It fills in the gap for you, leaving you without a loan to pay while you look for a new car.
Finding a GAP Insurance Provider
On the dealership end, you need to find a good GAP insurance provider. This is the company that will collaborate with you to ensure that those extra insurance policies get put into place quickly and easily. You need Charlotte Insurance.
Not only do we offer all of the other insurance policies that your dealership needs, but we also have several comprehensive options for GAP insurance. By working with us, you’ll be able to offer GAP insurance to your customers and also put the policies into place in an efficient manner.
Your dealership won’t have to do much at all, other than gather the information on the customer that you need in order to find them a loan. Once they decide to go with GAP coverage insurance, you’ll be able to add the policy into the mix, allowing them to add the premiums to their auto loans.
Have Questions? Contact Charlotte Insurance
Want to learn more about GAP coverage for your automotive dealership? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.