Total Loss Protection, sometimes referred to as a Loan or Lease Assistance Benefit, is designed to help vehicle owners during the early years of financing or leasing, when the outstanding balance may exceed the vehicle’s market value.
If a total loss occurs as a result of a qualifying accident or theft, this program may provide discretionary financial assistance to help reduce the difference between the vehicle’s actual cash value (ACV) and the remaining loan or lease balance, subject to the program limits and terms stated on the agreement.
In the event of a total loss caused by an accident or theft, a customer’s primary auto insurer typically settles based on the vehicle’s ACV. In many cases, this amount may be less than the remaining amount owed on the loan or lease. When this occurs, the Total Loss Protection program may assist with the shortfall, helping the customer move forward without carrying an unexpected financial burden.
Protect yourself from unforeseen circumstances
Do You Need Total Loss Protection Coverage?
When a vehicle is financed or leased, the outstanding balance can exceed the vehicle’s market value, particularly in the early years of ownership. If the vehicle is declared a total loss due to a qualifying accident or theft, this difference can leave the owner responsible for a remaining loan or lease balance even though the vehicle is no longer usable.
Total Loss Protection is designed to help address this situation by offering discretionary financial assistance that may reduce the shortfall between the vehicle’s actual cash value (ACV) and the remaining loan or lease balance, subject to the terms and limits of the program.
Without this type of assistance, a customer may receive a settlement from their primary auto insurer based on ACV and still remain responsible for any outstanding balance. Total Loss Protection may help minimize this financial impact.
Example (For Illustration Purposes Only):
| Outstanding Loan Balance: | $18,000.00 |
| Primary Insurance Settlement (ACV): | $11,000.00 |
| Remaining Balance: | $7,000.00 |
| Potential Assistance Under the Program: | |
| Loan / Lease Assistance Amount: | $7,000.00 |
| Loyalty Bonus Credit*: | +$500.00 |
| Total Potential Assistance: | $7,500.00 |
*The Loyalty Bonus is a non-cash dealer credit applied toward the purchase price of a replacement vehicle from the original selling dealer. It has no cash value and is subject to dealer participation and program terms.
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