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A Canadian company is pushing a new insurance product to U.S. automobile dealers aimed at customers who owe more on their vehicles than the automobiles are worth.
The product is called Walkaway. The insurance pays as much as $15,000 toward the balance of a vehicle loan or early termination charges on a lease. The protection covers negative equity. Negative equity is the difference between a vehicle's wholesale value and its loan balance. The coverage is added to an installment sales contract or lease agreement. It addresses the debt of customers who must return their vehicles to a dealership because of a personal emergency. A typical insurance package might sell for $199 to $689. the insurance might cover death, critical illness, disability, job loss, international transfer, loss of driver's license and personal bankruptcy. The product's marketer is a Canadian company, iNet-Fi Inc. of Toronto. The company has negotiated an exclusive licensing agreement with EFG of Irving, Texas. EFG supplies U.S. dealerships with service contracts and other insurance products.
Referred from: (http://www.consumeraffairs.com) |
