What is Automotive Replacement Coverage?

After more than a year in development, Tri-Arc is proud to bring a dynamic new product to the automotive financing marketplace. Our product, Automotive Replacement Coverage (ARC) takes traditional GAP coverage to a new level. ARC is easy to understand, very affordable, and offers real value to the consumer. It provides a Dealer and their Lender with the opportunity to create customer loyalty and meaningful fee income.

In the event of a "total loss" or theft of a covered vehicle, the customer is often left with an outstanding balance that is greater than the insurance settlement received. In the event that traditional GAP coverage is in place, some or all of this deficiency is paid. At best, the customer is left with no equity for a replacement purchase or at worse, a remaining balance owed that has to be collected or charged off by the lender.

Tri-Arc’s Automotive Replacement Coverage avoids this scenario by replacing the vehicle. ARC does this by paying the difference between the primary insurance settlement of the original vehicle and the replacement cost of a current model year equivalent.The higher value of the replacement vehicle creates a greater equity to loan ratio benefiting both the customer and the lender.

Product Features

Structured as a dealer or lender sponsored guaranty Guaranty indemnified with CLIP Applicable for loan, lease or CASH buyers on new or used vehicles Provides inflation protection on new replacement vehicle Settlement based on collateral value NOT loan balance Settlement = replacement vehicle cost minus ACV of "totaled" vehicle Seamless, on line entry system that pulls necessary data from dealers' application or DMS system Enrollment system creates guaranty agreement, invoice, remittance form and extensive reports Automated on-line claims process