In an effort to provide Honda and Toyota dealers with a coverage option equal to or greater than factory offerings for certain competitors' vehicles, American Auto Guardian has introduced a 10-year/100,000-mile service contract product available only on Honda and Toyota automobiles.

The firm’s president, Lance Davis, noted that the favorable loss experience generated by these automobiles convinced the program’s underwriter that the coverage offered presented an acceptable risk. "The ability to match the widely advertised factory coverage offered by competitors will translate into either higher income per sale or more sales volume, depending on how the dealership structures the sale," Davis said.

According to Tim Brugh, American Auto Guardian’s National Sales Manager, the program is available in most states and is compatible with existing company VSC and GAP products. As with all American Auto Guardian service contract programs, the new product provides the protection of first dollar coverage from American Bankers Insurance Company of Florida, an AM Best A rated underwriter.

In addition, few restrictions are placed on this niche product. A general agent or franchised dealer is not required to market other AAG products in order to gain access to the “Honda and Toyota Only” program, according to Brugh.