Protection Your Auto Insurance Policy Doesn't Provide

TERMS AND CONDITIONS

This Agreement is between the Signer (You or Your) and DriveSmart Auto Care Inc (We, Us, or Our) or the Dealership and/or Financing Contract’s assignee.

Read this entire Agreement for all details, conditions, and exclusions that could prevent you from receiving the amount due under a QUALIFYING LOSS attributed to a CONSTRUCTIVE TOTAL LOSS.

Although not required to do so, You elect to purchase The Car Down Payment Reimbursement (CDR) Program for the amount and term shown above.  You may, as an alternative to purchasing this agreement, be able to purchase a similar product from a company of your choice.  This program is not insurance, it does not take the place of insurance on the Covered Vehicle, and does not afford collision, comprehensive, or any other form of automobile insurance coverage.  You are responsible for all communications with your Primary Carrier, including notices and claims.  If you purchase this program from Us, You understand that we may retain all or a portion of the amount paid by You.

BY SIGNING THIS AGREEMENT, YOU ACKNOWLEDGE AND AGREE THAT YOUR ACCEPTANCE OF THIS AGREEMENT IS VOLUNTARY AND IS NOT REQUIRED IN ORDER FOR YOU TO OBTAIN CREDIT, DOES NOT IMPACT THE CREDIT TERMS, AND HAS NO EFFECT ON THE TERMS OF THE RELATED SALE OF THE COVERED VEHICLE.  

YOUR RIGHT TO CANCEL

You have the unconditional right to cancel Your enrollment in The Car Down Payment Reimbursement (CDR) Program for a refund/credit of the unearned portion of the amount paid at any time.  If the Agreement is terminated or cancelled by You within 30 days of purchase, You will receive a full refund/credit of the amount paid, provided no Constructive Total Loss has occurred.  After 30 days, You will receive a refund/credit of the amount paid calculated by the Pro Rata refund method, or by the refund method as may be required by state or federal law, less a $50.00 cancellation fee, where such cancellation fee is permitted by law. 

To cancel this Agreement and request a refund/credit, You must contact the Dealership shown in the Agreement in writing, at the address shown.  If the refund/credit is not received within 60 days of notice of cancellation, contact the Administrator listed below. 

This Agreement will not provide benefits to any Covered Vehicle where: a) the amount financed is greater or less than the Minimum or Maximum Finance Amount Limit; and/or b) the Date of Loss exceeds the Maximum Term of Sixty (60) Months.  

DEFINITIONS

Administrator, Obligor, We, Us or Our: DriveSmart Auto Care Inc

Collision Repair: Repairs that are required as the result of an accident or upset involving the Covered Vehicle, regardless of fault.

Commercial Purposes: Includes use of the Covered Vehicle for a business in any manner including, without limitation, taxi, public omnibus, jitney or sightseeing conveyance, police car or other emergency vehicle, hauling, construction (other than driving to and from work), pick-up and delivery service, daily rentals, carry passengers for hire, snowplowing and company carpool use, business travel when the Covered Vehicle is used by more than one driver or the Covered Vehicle exceeds 12,500 lbs (GVWR).

Constructive Total Loss: A direct and accidental loss of or damage to the Covered Vehicle, which meets one of these criteria: 1.) the total cost to repair the Covered Vehicle is greater than or equal to the Actual Cash Value of the Covered Vehicle immediately prior to the loss; or 2.) the Primary Carrier declares the Covered Vehicle a total loss.  

Covered Vehicle: The automobile described on the Declarations Page under the COVERED VEHICLE INFORMATION section, with a vehicle purchase price of no more than one hundred and twenty-five thousand dollars ($125,000) and no less than five thousand dollars ($5,000) and a gross vehicle weight rating (GVWR) of less than fifteen thousand (15,000) pounds.

Date of Loss: The date on which the Covered Vehicle is reported stolen or incurs physical damage that is severe enough to constitute a Constructive Total Loss.

Dealership: The dealership you originally purchased/financed the Covered Vehicle from as identified on the Declarations Page under the DEALERSHIP INFORMATION section.

Financing Contract: The financing agreement, loan agreement, retail installment contract, or lease agreement for the purchase or lease of the Covered Vehicle for which You are financially responsible to make equal monthly payments on a specific date each calendar month, which sets forth the terms, conditions, inception date, and expiration date of the financing instrument.

Financial Institution/Lender: The entity to which your Financing Contract is sold, assigned, or transferred, as identified on the Declarations Page under the LENDER/FINANCING INFORMATION section.

Installment Sales Contract, or Loan: See Financing Contract above.

Primary Carrier: the insurance company prior to the Date of Loss that underwrites a policy of insurance providing physical damage coverage on the Covered Vehicle or the insurance company that provides liability coverage to any person who has caused the Covered Vehicle to incur a Constructive Total Loss.  

Qualifying Loss: See Constructive Total Loss above.

Replacement Vehicle: The automobile purchased or leased to replace the Covered Vehicle.

Settlement Date: The date on which the Primary Carrier issues the settlement check for the Covered Vehicle.

You, or Your: The registered owner of the Covered Vehicle and signer of this Agreement as identified on the Declarations Page under the CUSTOMER INFORMATION section.

CONSTRUCTIVE TOTAL LOSS PROCEDURES

A CONSTRUCTIVE TOTAL LOSS must be reported to the ADMINISTRATOR within 90 days of Your Primary Insurance SETTLEMENT DATE.  No amount will be paid for any CONSTRUCTIVE TOTAL LOSS reported after 90 days of Your Primary Insurance SETTLEMENT DATE. Receiving benefits for a CONSTRUCTIVE TOTAL LOSS will cause this Agreement to terminate and be fully earned and not subject to any cancellation refund.

In the event of a Constructive Total Loss, you must notify and provide the following to the Administrator:

1. A copy of the Financing Contract or bill of sale (aka Buyer’s Order, Purchase Agreement, etc.)
2. Proof of cash receipt or cashier’s check, and any supporting documents disclosing the original cash down payment amount to be protected
3. A copy of this signed Agreement
4. A legible copy of the police report, which must include confirmation of the Covered Vehicle shown on this Agreement
5. A copy of the settlement check, Declarations Page, Covered Vehicle valuation report, total loss breakdown, and complete total loss package from Primary Carrier
6. Color photos of the damage to the Covered Vehicle
7. The manufacturer’s invoice or window sticker (if the Covered Vehicle was purchased new).  If the Covered Vehicle was purchased used, a copy of the bookout sheet
8. Any additional or reasonable documentation requested by the Administrator.  The Administrator will not be able to obtain this information for You.

AGREEMENT TERMS

In the event of a Constructive Total Loss of the Covered Vehicle during the term of the Financing Contract and compliance by You with the Loss Procedures, the Dealership will apply an equal amount of the original down payment for the Covered Vehicle, according to the Financing Contract or bill of sale, and any original supporting loan documents, to the new Financing Contract when You finance a replacement Covered Vehicle with the Dealership shown in this Agreement.  Only the event of a Constructive Total Loss of the Covered Vehicle is subject to relief under The Car Down Payment Reimbursement (CDR) Program Agreement.  Partial loss of the Covered Vehicle is not subject to relief under this program.

IN ORDER TO RECEIVE A PAYOUT UNDER THIS AGREEMENT, YOU MUST RETURN TO THE ORIGINAL DEALERSHIP AND PURCHASE A REPLACEMENT VEHICLE WITHIN 60 DAYS OF REPORTING THE LOSS TO THE ADMINISTRATOR.

In the event YOU do not qualify for financing with the DEALERSHIP for the replacement vehicle FINANCING CONTRACT, the DEALERSHIP will refund the purchase price of the The Car Down Payment Reimbursement (CDR) Program to YOU.

CONDITIONS

1. Concealment, Misrepresentation and Fraud: This Agreement may not cover a loss if You intentionally conceal or misrepresent any material fact relating to this Agreement.
2. You are responsible for making at least the minimum payment under the terms of the Financing Contract for each payment due scheduled after the Date of Loss until the request for benefits has been processed.
3. This benefit applies only to a Constructive Total Loss sustained while the Covered Vehicle is within the United States of America (USA), its territories or possessions, Canada, or being transported between any parts thereof.
4. The Dealership will be responsible for submitting a copy of this Agreement to the Administrator

EXCLUSIONS

In addition to other provisions herein, this Agreement does NOT provide coverage for: 

1. loss occurring prior to the effective date of this Agreement.
2. loss occurring prior to the Financing Contract inception date shown in the schedule.
3. loss due to confiscation of the Covered Vehicle by a government body or public official. 
4. loss of amounts applied from factory incentive programs or dealer cash support programs.
5. loss caused by theft, unless a police report is filed.
6. loss due to normal wear and tear, freezing, mechanical or electrical breakdown or failure.
7. Constructive Total Loss of the Covered Vehicle resulting from abandonment of the Covered Vehicle by You only when Covered Vehicle has been voluntarily discarded, or left behind, or otherwise relinquishes possession of Covered Vehicle to the extent that the relinquishment shows intent to forsake and desert the Covered Vehicle so that the Covered Vehicle may be appropriated by any other person.
8. loss resulting from the Covered Vehicle being operated, used, or maintained in any race, speed contest, or other contest. 
9. loss of the Covered Vehicle held as security under any wholesale, floor plan, field warehouse, or any type of financing made to a dealership or its employees. 
10. loss of the Covered Vehicle, while used for Commercial Purposes.
11. loss occurring after the Covered Vehicle has been repossessed by the Financial Institution/Lender or placed in their possession or in the possession of their employees or agents.
12. loss to Covered Vehicle with a Financing Contract in which the amount financed for the Covered Vehicle exceeds the minimum or maximum Vehicle Purchase Price Limit shown in this Agreement at the inception date of the Financing Contract.
13. loss to Covered Vehicle with a Date of Loss that exceeds the maximum term as shown in this Agreement.
14. loss to vehicles made by Daewoo and Yugo, which are excluded from coverage.
15. loss attributable to other than the standard or optional equipment available from the manufacturer of the Covered Vehicle, including but not limited to: special carpeting, furniture, bars, audio, video, or data equipment, cooking and sleeping facilities, customized paint, or any equipment installed on the outside of the Covered Vehicle to overcome a physical handicap. Factory approved conversion packages and dealer installed options usually included in used car value guidebooks are not excluded.
16. loss to the Covered Vehicle with a salvage or rebuilt title designation due to the Lemon Law, or with a title that has been changed or re-issued as salvage or rebuilt prior to the Date of Loss.
17. loss resulting directly or indirectly from any dishonest, fraudulent, criminal, or illegal act or arising from an intentional act committed by You, a person covered under the policy underwritten by your Primary Carrier, or any uninsured associates.
18. loss due to war, whether declared or not, invasion, civil war, insurrection, rebellion, or revolution.

TERMINATION OF AGREEMENT 

This Agreement will terminate on the earlier date that one of the following events occurs: 

1. The date the Financing Contract is scheduled to terminate
2. Upon payment in full of the Financing Contract
3. Expiration of any redemption period following the repossession or surrender of the Covered Vehicle
4. In the event of a Constructive Total Loss of the Covered Vehicle
5. Upon full prepayment of the Financing Contract
6. Upon refinancing of the Financing Contract
7. When the term of this Agreement has expired

MITIGATION OF LOSS

You should do all things reasonable and practical to avoid any loss covered under this Agreement and to protect the Covered Vehicle from any further loss.  You should also take reasonable measures to ensure that the maximum amount of Actual Cash Value of the Covered Vehicle is paid by your Primary Carrier.   

STATE PROVISIONS

The cancellation fee is not applicable in Colorado, Indiana, Kansas, Louisiana, Massachusetts, Missouri, New Mexico, Vermont, and Wisconsin.

SEVERABILITY

If any provision, or portion thereof, of this Agreement is, or becomes, invalid under any applicable statute or rule of law, it is to be deemed stricken and the rest of this Agreement shall remain in full force and effect.