GAP - REINSURANCE
GAP - Reinsurance is relatively identical to GAP coverage with the only difference being that the producer (dealer) takes the risk through an off-shore reinsurance company. The insurer would either cede premium directly to the dealer captive (very large producer) or cede to Auto Trac System's captive and the profits would be retro-ceded into the dealer's captive.
Most dealerships reinsure their VSC programs and have become comfortable with this set-up. Reinsuring GAP allows us to compete with all other GAP underwriters.
Reinsurance GAP changes the dynamic for all parties by moving the dealership into a partnership with the underwriter. It keeps our relationships in place for longer periods of time.
Provided through Auto Trac System and insured by AM Best's rated A- (or better) insurance company, coverage is available on all retail finance contracts, including both new and used vehicles for franchised and non-franchised dealerships.