Spot Insurance

The Spot Program is used to assist financing companies and customers by providing auto insurance for the physical damage to the vehicle at the point of sale, or on the spot. The benefit is two fold. First, it provides the customer with physical damage protection for their newly purchased vehicle if they have no insurance or can’t furnish proof of insurance as the vehicle drives off the dealership lot. Second, it satisfies the lender requirement of having physical damage insurance in order for the lender to be protected for its asset.

The spot insurance is a temporary binder for insurance coverage and is not considered a long-term solution by any means. Although, if a standard auto policy is found to have overlapping effective dates, the spot binder essentially becomes null and void because it is excess coverage to any primary policy. However, the benefit of offering this product is that anyone can purchase this product and it can be added much more quickly than the standard auto policy.

This product is meant to assist the dealer in closing the deal and getting the car off the lot. A typical auto policy can take an additional 30-40 minutes or in many cases requires that the buyer to leave the dealership premises to find an agent to underwrite the policy. Our product is specific in that it is an immediate temporary solution for the dealer, finance company and customer.