Nowcom’s immediate solution for the dealer, finance company and customer. The Material Damage Binder is used to assist finance companies and customers by providing auto insurance for the physical damage to the vehicle at the point of sale.
The benefit is twofold:
- It provides the customer with physical damage protection for their newly purchased vehicle if they have no insurance or unable to furnish proof of insurance as the vehicle drives off the dealership lot.
- It satisfies the typical lender requirement of having physical damage insurance in order for the lender to be protected for its asset.
The binder is not considered a primary policy, meaning that if a standard auto policy is found to have overlapping effective dates, the binder becomes null and void.
The benefit of offering this product is that anyone can purchase this product and it can be added much more quickly than the standard auto policy.
Price
The average price of a binder is $130-150 for 30 days. It is not a monthly contract since some months are greater and less than 30 days.
Coverage
The Material Damage binder covers for all collision and comprehensive losses subject to the deductible located on the declarations (Usually $500)
Approved States: AZ, CA, CO, FL, GA, ID, IL, IN, IA, KS, KY, MI, MN, MO, NC, NE, NM, OH, OK, OR, PA, SC, TN, UT, VA, WA.
ExclusionsThis is just a sample of acts that are excluded:
- Intentional damage
- Damage caused by racing or speed contests
- In Mexico greater that the 50 mile range or more than the allotted frequency
- Fraud