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GAP is one of the most beneficial consumer protection products on the market today, but is not always ideal in every situation.  DPW does not compete against GAP, but provides a much better benefit to those with "equity" in the auto loan.  In fact, many lenders offering DPW today have seen a lift in their GAP penetration by adding this innovative concept to their protection product offering.

The Depreciation Protection benefit is calculated by subtracting the outstanding loan balance at the time of loss from the value of the vehicle (MSRP or Retail) at the time of plan purchase.   The benefit will not exceed the lesser of the loan balance or the maximum selected benefit ($10,000, $5,000, or $2,500).     

DPW is designed to compliment your already successful GAP program.  Borrowers electing to purchase DPW often have thousands of dollars of equity in the auto loan and don't have a need for the 'negative' equity protection that GAP offers.  In fact, many lenders rolling out DPW see a lift in GAP production because of the excitement this new total loss protection provides.

Cars and Trucks only, not to exceed $100,000  in value (Retail or MSRP).   No mileage, make or year restrictions apply.    Commercial use vehicles, vehicles over 1 ton capacity and salvaged/reconstructed titles are excluded from coverage.  

Borrowers can select between a $10,000 , $5,000 or $2,500 maximum benefit.

The Depreciation Protection settlement is issued to the lien holder to be applied directly to the outstanding loan balance, prior to the primary insurance settlement.

Depreciation Protection is completely separate from the primary insurance carrier settlement.  Upon total loss, the DPW settlement is calculated and applied towards the outstanding loan balance, reducing it or completely paying it off.  Often times this results in the  primary carrier settlement  proceeds coming directly to the borrowers to use as they see fit!

Common exlcusions are: commercial vehicles or vehicles for hire; salvaged or reconstructed titles;  vehicles with value over $100,000 (Retail or MSRP); vehicles exceeding 1 ton capacity;   loan terms over 84 months; leased vehicles or balloon notes;  full cash purchases;  losses due to fradulent activity.   Each policyholder will receive a Depreciation Protection Addendum detailing exclusions and conditions of coverage.  You should review the policy carefully.   If you have questions about coverage, we encourage you to contact us.  

Yes, it's likely that 40-60% of borrowers have equity in the vehicle at the time of loan inception.  Many of these borrowers won't purchase the GAP product because of their equity position, but still desire protection from the negative impact of depreciation upon total loss.

It all depends on your sales culture ...most sellers will experience the same penetration numbers they are seeing on GAP today.

No, Depreciation Protection is a debt cancellation product, fully backed and insured by Securian Casualty Company.

Accidental Death and Dismemberment coverage provides a $1,000 benefit paid towards the outstanding loan balance should a consumer die or suffer dismemberment as a result of an accident.