BEDFORD, Texas -- Warrantech Corp., a provider of service contracts and automotive aftermarket warranties, has been named by Lloyd's of London's Insurance Syndicates to sell a new Guaranteed Asset Protection insurance program. The coverage is aimed at used-vehicle buyers, consumers with poor credit and secondary finance companies.
This month, Warrantech Automotive Inc., a wholly owned subsidiary of Warrantech, of Bedford, Texas, started offering the GAP program to dealers. GAP insurance applies when vehicles are wrecked or stolen. It protects an owner who owes more than the vehicle is worth by making up the difference between an insurance claim payment and the balance of the car loan.
Under the new program, Lloyd's will underwrite the first 36 months of each insurance contract.
Another insurer, which Warrantech did not identify, will cover the remaining period for longer contracts.