It's "primary" auto insurance you can offer your customer right on the spot that will complete the insurance requirement in your lease. While this might be a very convenient insurance option for your customer, this program is built to BENEFIT YOU, THE DEALER.
Because this was created for you, the dealer so you could:
Yes. We make sure that insurance coverages in our program meet the motor vehicle requirements of each state.
We all want an insurance program that is competitive and will be something your lessee will want to accept, so we will work with you to get a competitive rate. Some of the factors we need to look at to determine a rate are your state's minimum auto liability limits and what kind of premium your state averages.
We do not charge anything for using our insurance program. The only cost you will have is the cost to pull the lessee's driving record. Every state charges something for this, and the charges range from $5 to $28 per driving record. Since our computerized system is pulling the driving record, there is nothing you need to do to get these driving records. We simply bill back those charges to you at the end of each month.
Since your customer is paying you for their portion of the premium as part of their lease payment, we simply bill you that amount at the end of the month. For example, if you have 50 customers each paying you $75 for the premium in a particular month, you would have collected $3,750. We would send you a bill for $3,750 at the end of that month.
No you do not. We are the ones that are underwriting the driving record and determining a premium for that driver. You are simply showing your customer the premium WE are offering them. Keep in mind; you are not requiring them to enroll, you are simply offering a convenient insurance option. This is much like the way companies offer health insurance to their employees.The employer isn't doing any underwriting or duties of an insurance agent. They are just collecting the premium to pay it to the insurance company. It's the insurance company that is determining the premium, and you are simply offering it.
There will be some customers you have that have so many violations on their driving record that we cannot offer them insurance. If a driver has 4 violations or more in the past 3 years, they won't qualify. We are running this program with other dealers, and we see that approx. 77% of customers qualify and are offered insurance. Of that 77% of drivers that qualify, 92% of them chose to accept our insurance.
This insurance program is exclusive to Lease Here Pay Here dealers, and there is nothing like it anywhere. We modified an existing insurance program we created for fleet companies we have been running since 1995 to fit with LHPH dealerships. Our insurance policy has specific wording created for the lessee / lessor relationship. You won't see anything like it anywhere else.