Common Causes Of A Total Loss And How GAP Waivers May Help
The average consumer isn’t always sure what it means to have their vehicle totaled. No one truly clarifies it until you are in a situation where it warrants an explanation. According to kbb.com, insurance companies “total” a car when the cost to repair the vehicle exceeds the car’s value. This leaves the consumer to come up with the difference if they owe more on a loan or lease than what the car is worth at the time of loss.
This is where a GAP program can come in handy. A GAP waiver can be purchased to help the car owner cover the balance of their loan should the vehicle ever receive a “totaled” status. We all know that a car loses some of its value the second it is driven off the lot. Therefore, offering a GAP program to your dealerships may help those consumers in their time of need. Without it, they may be stuck paying for a vehicle they don’t have anymore. No one wants to do that!
Some common causes of totaling that are reported most often are theft, natural disasters, and traffic accidents.
Vehicle theft happens all the time in the United States. When the vehicle owner has a GAP waiver in place, it could be a huge help if the car is never recovered or is significantly damaged when it is found. If the car is stolen, it must be declared a total loss in order for most benefits to be paid – even if it is recovered months down the road. It is always beneficial to direct the customer to their GAP contract when inquiring about program specifics.
Natural disaster events, although often unpredictable, are a fact of life regardless of where you live. Whether a tornado takes your car on a joy ride or the summer rain floods your car, GAP waivers can help ease the financial pain. Many times, a natural disaster will automatically total your car. The cost for repair is too high as future unknown problems may occur, so the insurance company doesn’t want to foot the repair bill. It is easier and less costly for them just to total it. Therefore, using your GAP waiver may make a natural disaster seem like less of a financial disaster with your vehicle.
Shockingly enough, the CDC says that vehicle crashes are the #1 cause of death in the United States. This is why car accidents are part of the common reason that vehicles are totaled. It is, yet another reason, to make sure your dealerships are providing a reputable GAP waiver to their customers.
Classic’s Signature GAP program is a great option for dealerships of all shapes and sizes. We offer coverage up to 84 months for automobiles, light trucks, vans and powersports. There are even special programs with coverage up to 120 months for RVs, trailers, and watercraft. We can protect up to 150% of the MSRP/NADA value for automobiles, light trucks, vans and powersports and up to 135% of the MSRP/NADA for RVs, trailers and watercraft. As you can see, it doesn’t exactly have to be something you drive on the open road – it can be a watercraft.
Contact the Classic sales team today to get your dealerships on board with an amazing GAP program.