If your car is totalled or stolen, would you have enough money to pay the difference between the loan balance and the vehicle's actual cash value? That's where Guaranteed Auto Protection (GAP) insurance comes into play. With GAP, this difference is covered automatically, giving you peace of mind and financial assurance. Better yet, this type of protection is inexpensive, and it can be easily included in your monthly payment.
When you discuss GAP insurance, do the following:
Discuss Features and Benefits
In order to feel comfortable selling products or services or even referring individuals to CCB, it helps to know what the product or service is (feature) and how it helps individuals (benefits). Below are the features and benefits of the GAP insurance.
Features
- $350.00 for loans up to 60 months, $390.00 for loan terms exceeding 60 months, and only $450.00 for commercial vehicle loans.
- Up to $50,000 coverage per loan
- Available on new and used automobiles and trucks, as well as light commercial vehicles
- Can be added after loan closing
- Offered through Old Republic Insurance Company and administered by Life of the South
Benefits
- Pays the difference between the loan balance at the time of the loss and the vehicle's actual cash value
- Does not come out of pocket in case of a total loss accident
- Usually cheaper to purchase through the bank than the car dealership
- Can be added to the financing of the loan
Identify Opportunities
Always be on the lookout for clients who may benefit from GAP insurance. Below are examples of prospective clients.
- Clients who are purchasing a car or truck
- Business owners buying light weight trucks for work
- Someone buying a car that quickly depreciates in value
- Students turning 16
- Clients graduating from high school/college
- Clients replacing a total loss vehicle
Discover Client Needs
Before you recommend a product or service to a client, prospect, family or friend, it only makes sense to recommend things they might actually need or like. This is why it's important to ask questions that help us gain insight about an individual's banking preferences.
Sales Associates
To identify the very best credit product for each prospect based on his or her needs, you need to ask qualifying questions. The qualifying questions are as follows:
- Do you anticipate having any borrowing needs in the future?
- What do you plan on using the borrowed funds for?
- Do you have a plan were you to get in an accident?
- How much insurance do you have?
- Will your insurance pay off your loan if you have a total loss accident?
Non-sales Associates
If you don't feel comfortable with credit product information, but are working towards your Take it to 10 goals, don't focus on a specific product. Instead, ask if the prospect is interested in applying for a credit product at CCB. To do this you might say:
I work at Capital City Bank and we offer credit products designed to meet your banking preferences, including GAP insurance. Would you be interested in learning more about this with an associate of mine?
Recommend Products/Services
When you have identified a need or learned about a prospect's banking preferences, you are ready to start making recommendations that align with their goals or likes and dislikes.
Sales Associates
Below are examples of what you might say when recommending GAP insurance after having used the qualifying questions.
Mr. Sweets, wouldn't it be nice to know that if you were to get into a total loss accident, your auto loan would be paid off in full? I recommend getting the GAP insurance for your new vehicle. It is only a one-time fee of $350.00 that can be added to the financing of the loan, so you do not have to pay out of pocket. Would you like me to add this to your loan today?
Non-sales Associates
If you are simply trying to make a referral to CCB, then you are recommending the bank, and even a specific banker. Below is an example of how you make this recommendation.
I recommend Capital City Bank, not only because I work there, but also because it is a great place to bank. We are a strong, stable, community bank with a variety of personal and business products and services. I would be happy to connect you with a friendly banker who would be willing to help you find the right insurance product for you.
Handle Objections
It is highly likely that once you make a product or service recommendation, you will receive objections. Before responding, keep the following points in mind:
- Make sure you understand the question or objection
- Be empathetic
- Address the question or objection even if you can't change the product or service
- Check with the prospect to make sure he or she accepts your response or explanation
To respond to objections, use Feel, Felt, Found to structure your responses. Below are examples of GAP insurance objections and suggested ways of responding.
Sales Associates
Client Objection: "I don't want or need GAP insurance."
Feel: I understand that you feel that way.
Felt: Many of my clients have felt the same way.
Found: Ms. Gibson, let me ask you a few questions. If you get into an accident and the value of the car is severely less than the loan amount on the vehicle, could you afford to pay the difference and purchase a new vehicle? Do you have enough money in savings to cover two car payments? For only $350.00, Capital City Bank can protect this loan against an unforeseen total loss accident. Would you like to consider adding this service to your loan?
Non-sales Associates
Client Objection: "I have to talk to my husband."
Feel: I understand you need to speak to your husband.
Felt: Most people like to check out a few places or get recommendations before doing something.
Found: Most people I talk to find that Capital City Bank has all the bells and whistles of the big banks with a small community feel. You can always speak to one of our bankers who can tell you more about our GAP insurance with no strings attached. Would you like to give it a try?
Ask for the Business
If you don't receive an objection or have already come to an acceptable resolution with the client or prospect, you are ready to ask for the business. Asking for the business is what we say to move the sale forward. Below are some examples of what you might say to ask for the business.
Sales Associates
- May I add this service to your loan application?
- Would you like to add the GAP insurance to your auto loan?
- Do you want to add GAP insurance today?
- Are you ready to add GAP insurance to your application now?
Non-sales Associates
If you are making a referral for Take it to 10, you are trying to get the prospect to agree to meet with a banker about a need. Below are some examples of what you might say to do that.
- May I get your contact information so I can have my friend, ___________, call you?
- Can I get your name and number so I can have a banker call you about adding GAP insurance to your loan?
- May I have a banker call you to help you find the insurance product for you?
Make a Referral
If you are a sales associate or non-sales associate who cannot process a GAP insurance application, but have identified someone who is interested in GAP insurance, remember to refer him or her to an associate who can help.
Making referrals at Capital City Bank is as easy as A B C! Below is an example of the ABC method to making referrals.
Acknowledge or Ask questions about a need.What do you typically look for in a financial institution?Bridge with a transition statement highlighting how Capital City Bank can meet that need.I work at Capital City Bank and we have great products to help meet your financial needs.Connect to a Capital City Banker that can help.Our Personal Bankers/Market Leader/Lender can help you find the best insurance for your loan needs. Would you like for me to have a banker contact you at a time that works for you?Process the Sale
Sales are processed in generally one of two ways:
- The associate who can sell the product follows established policies and procedures to close the sale.
- An associate connects the person to a qualified banker using a Synapsys referral for the application. The qualified associate completes the GAP insurance application.
Additional Information on Sale Processing
See the Synapsys referral instructions.
