The Dealer Risk Management Group
A Simpler Way of Doing Things
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Another option you can offer at your dealership is a voluntary debt cancellation addendum. Debt cancellation can lower your customers’ cost of ownership. This option can be offered to your customer in place of your full coverage requirement.
In the case of a total loss, Debt Cancellation covers the debt owed to the dealer. Debt Cancellation is typically less expensive than comprehensive and collision insurance.
In the event of a total loss of the collateral, the payments due are cancelled, and the remaining debt is canceled.
Benefits of a Participation Structure
Charges can be added to the retail installment contract
No insurance tracking
Claims are quick since no outside insurance company is involved
Does not pay for partial loss repairs
Covers total losses only
Regulated by OCCC
