Excess Wear & Tear Insurance (EWT)

Excess Wear & Tear Insurance (EWT) provides coverage for damage that occurs as the natural and inevitable result of normal wear and aging.

American Risk Services is the single largest provider of EWT Protection in the United States and Canada, providing insurance to captive automotive insurance companies as well as independent auto finance companies...

The Need

American Risk Services' EWT Program is industry-renowned, addressing a problem inherent in the majority of lease agreements—the fact that the definition of 'normal' vs 'excess' wear & tear is often case-by-case and, thus, subjective. In these cases, Lessors require customers to be responsible for the excess wear-and-tear of their leased vehicles and, at the end of leases, these Lessors are left with uncollectable charge-offs if customers refuse to pay them.

The Solution – EWT

ARS' Excess Wear & Tear Program waives the lessee (customer)'s responsibility for excess wear & tear damages at lease termination (subject to policy conditions and exclusions). The program is typically offered as an aftermarket product to customers by dealerships, although it can also be purchased on a "blanket" basis by the Lessor and included in all leases.

There is a mutual benefit to EWT Insurance, as offered by American Risk Services—Lessors are protected from typical lease-end collections issues and customers are protected from excess wear & tear charges at lease termination.

The Benefits

  • Addresses customer concern about fine-print in lease contracts
  • Increased customer satisfaction with lease-end process
  • Reduced excess wear & tear related write-offs and collection activities
  • Program can generate fee income for Lessor and Dealers
  • Blanket program differentiates the Lessor and associated lease products from competition

Additional Information

  • Maximum amount of coverage normally between $2500-5000 (dependent on type of contract available/selected)
  • Flexible vehicle return policy (coverage is available 90 days before or after termination date or coverage is available upon any termination date)
  • American Risk Services only works with insurance companies rated 'A' (Excellent) or better by A.M. Best Company


Scott Satterthwaite – Business Development Executive

Rich Henderson – Director of Client Services, Product Management