Job loss insurance protection flourishes during period of unstable auto sales

As the recession entrenches, job loss insurance protection programs are flourishing, providing protection to people who may wish to buy a car but are spooked by the prospect of losing their jobs during the lease.
Most recently, the job loss protection program Walkaway — the author of Hyundai’s Assurance program, among others — has announced the appointment of Arch Insurance Group, a division of Arch Capital Group Ltd., as Walkaway’s underwriting partner in Canada.
Hyundai’s program is available for all Hyundai vehicles and allows a consumer to walk away from a loan or lease without having to worry about negative equity. The program offers to cover up to Cdn$7,500 in negative equity in the event of an unexpected job loss.
“Walkaway is among the most innovative offerings the insurance sector has seen in decades,” said Gord Kerr, CEO and Chief Agent of Arch Insurance (Canada).
In fact, job loss protection is becoming a ubiquitous part of the car-dealing landscape, as both Echelon General Insurance Company and Toyota Financial Services each underwrite and/or offer similar programs.
Echelon is underwriting the Kia Integrity Advantage program, which also covers up to Cdn$7,500 in negative equity in the event of a bankruptcy or involuntary job loss. To qualify for benefit approval, a consumer must have made at least two scheduled payments and be current on the loan or lease.
Toyota’s program offers up to Cdn$10,000 in credit protection to consumers who suffer an unexpected job loss during a lease, although the offer applies only to select models such as the Yaris Hatchback, Yaris Sedan, Corolla, Matrix, Camry, Sienna and RAV4 models.