Guaranteed Asset Protection

GAP is one of the many products we offer as part of our reinsurance lineup! In BHPH, GAP is a no brainer!

Every day we talk to car dealers around the country and we learn about their business and offer them solutions to problems or open their eyes to opportunities that they may not had previously considered. What you probably already know is that every dealership is different, but in BHPH, dealers face many of the same problems because their customers are very similar. One of those problems, or opportunities for the optimists reading this, is what to do with remaining balances when your customer has had a total loss accident and you’ve received what you are going to get from the insurance company for the vehicle.

A few dealers we have spoken with decide to go after the customer for the left-over balance, but as I’m sure you have guessed, that option is rarely fruitful and if anything, it alienates that customer from purchasing from you again. You spend a lot of money on marketing, why would you do anything that pushes customers away from you? So, most dealers we speak with tell me they forgive the balance and write it off as uncollectible in an effort to keep the customer and focus efforts on parts of the business that are more fruitful. This way of managing the problem is probably the one that makes the most sense for you, BUT, let us introduce you to the opportunity.

If you really think about that latter method of handling the left-over balances, you are providing GAP for the customer, you are just doing it for free. Why do that when you could sell it to them? Not only sell it to them, but do so through a reinsurance company so you get to keep all of the underwriting profits and you don’t have to deal with a 3rd party GAP company who is trying NOT to pay you…

So just an example, you do 150 GAP this year, and charge each customer $499 (obviously, what you charge the customer is up to you) and put that on the retail installment contract as a line item. You’ve just added $75,000 to your receivables for a service you were going to give those customers for free anyways! When you have a GAP claim, you file it with your reinsurance company and cut yourself a check! This is all found money that is not being paid to you by your customers right now.

If you are selling GAP right now, why sell someone else’s GAP when you can sell your own? Again, with a reinsurance company you keep the underwriting profits and you don’t have to spend time (I know it’s a lot) dealing with the 3rd party company that is trying to find a way not to pay you!