ICBA Reinsurance announced last week a partnership with Transamerica and Frost Financial Services to provide AutoShield GAP insurance to members of the Independent Community Bankers of America.
GAP reinsurance products protect a borrower’s new vehicle in the event of theft or damage or total loss. AutoShield GAP pays the difference between what the insurance company says the car is worth and the balance of what the borrower owes.
“Borrowers need protection from upside-down loans and the risk of losing their essential transportation,” Jim Tenhundfeld, the president of Frost Financial Services and AutoShield GAP administrator, said. “Many consumers purchase GAP at the dealership, and it can be costly. ICBA members can now provide customers a GAP program with some of the best coverage in the market at a price significantly less than what they will typically pay at the dealership.”
ICBA Reinsurance President and CEO Steve Ello said the skip-a-payment function will allow community banks to reduce potential charge-offs.
“We are committed to making this a successful program for community banks engaged in auto lending,” Ello said. “The sign-up and start-up processes are easy, and complimentary sales tools and training will ensure that program participants have the resources and support that they need.”