Coverage Plus

A Physical Damage Protection Program

Do you have customers that won’t cooperate with the insurance company on a claim? Have you ever had a customer cash a claim check and not fix the car? Have you incurred a loss due to your customer’s insurance lapsing? Our Collateral Protection Insurance (CPI) through Coverage plus solves these issues and more!

Lease and BHPH agreements typically require the customer to provide evidence of full coverage insurance, which includes liability AND comp/collision coverage. In many cases, your customers will have a policy for liability coverage due to state laws, but not comp/collision insurance. These are the perfect candidates for you to offer the Coverage Plus program!

With Coverage Plus, your customer can satisfy the comp and collision insurance requirement when you simply add the vehicle to your existing physical damage policy. Your vehicle is covered by your own policy and your customer didn’t have to leave the dealership to get it done!

Your customer reimburses you for the cost of the coverage at the same time they make their vehicle payment.

Benefits to your customers

  • Coverage Plus satisfies a portion of the insurance requirement of the contract.
  • All Customers Qualify! No credit check and no driving record check!
  • Affordable Rates! In many cases, your customer can save between $25 – $400 annually!
  • Easy Payments! Coverage Plus is paid along with each vehicle payment.
  • Rates on the vehicle will not change in the event of an accident or traffic violation

Dealer Benefits

All insurance claims are paid directly to YOU! There’s no need to worry about the customer not cooperating with the insurance company or receiving the payment in error. YOU get to file the claim and YOU get paid by the insurance company for the damages.

  • YOU are in control of the coverage, not the customer!
  • EASY to add and delete covered vehicles. Our online tool is available 24/7
  • There is no enrollment fee to participate in this program!

Coverage FAQs

What is Covered?

The physical damage to the vehicle. This coverage is also known as “All Risk,” providing an expanded version of comprehensive/collision coverage. See your policy for details of the coverage. Please note: This policy DOES NOT include towing, and storage, and salvage vehicles.

Who is Covered?

This protects your interest in the vehicle only. It does not provide the state required liability coverage for your customer and they will still need to obtain liability insurance. All qualified vehicles can be added to your policy.

What are the Rates?

Rates are determined by the vehicle’s value. The formula to determine actual cash value of the vehicle is:

NADA Clean Trade + NADA Clean Retail ÷ 2 = ACV (Actual Cash Value)

Once you determine the ACV using the formula above,  you can simply use the chart below to determine the rates:

ACV $1,501 – $4,000
$65.00 per payment period – 12 payments (monthly) per year
$32.50 per payment period – 24 payments (semi-monthly) per year
$30.00 per payment period – 26 payments (bi-weekly) per year
$15.00 per payment period – 52 payments (weekly) per year
$2.14 per day – daily rate (for cancellation purposes only)

ACV $4,001 – $6,000
$78.00 per payment period – 12 payments (monthly) per year
$39.00 per payment period – 24 payments (semi-monthly) per year
$36.00 per payment period – 26 payments (bi-weekly) per year
$18.00 per payment period – 52 payments (weekly) per year
$2.56 per day – daily rate (for cancellation purposes only)

ACV $6,001 – $8,000
$93.00 per payment period – 12 payments (monthly) per year
$46.50 per payment period – 24 payments (semi-monthly) per year
$42.92 per payment period – 26 payments (bi-weekly) per year
$21.46 per payment period – 52 payments (weekly) per year
$3.06 per day – daily rate (for cancellation purposes only)

ACV $8,001 – $12,000
$145.00 per payment period – 12 payments (monthly) per year
$72.50 per payment period – 24 payments (semi-monthly) per year
$66.92 per payment period – 26 payments (bi-weekly) per year
$33.46 per payment period – 52 payments (weekly) per year
$4.77 per day – daily rate (for cancellation purposes only)

ACV $12,001 – $15,000
$190.00 per payment period – 12 payments (monthly) per year
$95.00 per payment period – 24 payments (semi-monthly) per year
$87.69 per payment period – 26 payments (bi-weekly) per year
$43.85 per payment period – 52 payments (weekly) per year
$6.25 per day – daily rate (for cancellation purposes only)

What does the Policy pay in the event of a claim?

The policy pays the lesser of three options (less the deductible)

  • Cost of Repair. (Obtain an estimate of the repair cost. We encourage you to contact a repair facility that you’re familiar with for the estimate to ensure a fair quote. The estimate should be based on using like/kind/quality (LKQ) parts.
  • Limit of Liability (policy limit is $15,000)
  • Actual Cash Value (NADA Clean Trade + NADA Clean Retail ÷ 2) at the time of the claim.

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