Loss Damage Waivers
Loss Damage Waiver – (The Leasing Solution)
- A Loss Damage Waiver is an alternative to Comprehensive and Collision Insurance that the dealership or the leasing company can offer to the customer, (Subject to your state regulations).
- A Loss damage waiver can lower your customer’s costs to lease a vehicle. When a customer chooses a loss damage waiver as an alternative to comprehensive and collision insurance, only liability insurance is required. Loss Damage waivers will save your customers money.
- In the event of a covered total loss to the collateral, the customer’s payments due are cancelled, minus a small deductible, or no deductible, depending on your state regulations. The leasing company is reimbursed for the collateral’s current, actual cash value by the reinsurance company.
- Is a Loss Damage Waiver, “Insurance”? No, it is an agreement which amends the lease agreement.
- A Loss Damage Waiver is different from insurance, Loss Damage Waivers reimburses the lease company on total losses and the customers remaining lease payments are waived minus the deductible. A loss damage waiver does not pay for partial loss repairs. Loss damage wavers save your customers money, since property damage insurance is not required.
- Loss damage waiver charges can be added to the lease agreement as a line item, becoming part of the customer’s payment.
- When your customers have a loss damage waiver, there is no insurance tracking.
- The claims process is quick and easy, since no outside insurance company is involved.
- The customers, who choose loss damage waivers may have larger down payments. The amount of money needed to obtain insurance is considerably less, when only liability insurance is required.
- Reinsurance allows you to earn the underwriting profits.
- A Loss Damage waiver is a win-win, for you and the customer
This is an overview of Loss Damage Waivers. Please contact AVP for the Loss Damage Waiver’s full details and the loss damage waiver agreement applicable to your state.
All, AVP Programs are reinsurance programs, where you earn the underwriting profits.
Will a Loss Damage Waiver Program work for you?
Contact us for a customized pro-forma, to help you to estimate, the profitability of offering a debt cancellation addendum contract program.
