OLDSMAR, Fla. — Norman & Co. has launched two new programs, Classic Diminished Value Trade-In Protection and Classic Depreciation Benefit Protection, as part of its Classic product line.
The new programs are designed to drive customers back to the originating dealership and are backed by Lyndon Southern Insurance Co., which has an "A-" (excellent) rating with AM Best.
The first program, Classic Diminished Value Trade-In Protection, provides a trade-in credit of up to $10,000 in the event a vehicle is in a collision, survives that collision, has been repaired, and the customer returns to the originating dealership to trade in their repaired vehicle.
“After a vehicle is repaired, the trade-in value is often far less than the trade-in value of a similar vehicle without a history of a collision,” Ferenz said. “We expect this program to be well received by dealerships and consumers based on the frequency of total losses to repaired vehicles.”
Ferenz noted that, according to Insurance Information Institute, collisions are more than twice as likely to result in repairs than a total loss. “That’s an easy and important story for dealers to tell customers.”
The second program, Classic Depreciation Benefit Protection, offers a maximum benefit of $10,000 and comes into play when a vehicle is stolen and not recovered or deemed a total loss as a result of an accident. It also pledges to cover the depreciation whether customers finance the vehicle or pay cash.
“The insurance company covers only the loss of the vehicle based on book value — what the new car or truck is worth at market value on the date it is totaled,” Ferenz said. “But neither insurance nor GAP cover depreciation and that depreciation could mean consumers would be losing many thousands of dollars.”
As with Classic Diminished Value Trade-In Protection, the benefit applies when the customer returns to the originating dealership to replace the totaled vehicle, according to Ferenz.
“Dealerships will appreciate the prospect of selling a second vehicle,” he said.