If an auto lender is not using insurance tracking with their customers, the company is taking a high and unnecessary risk which results in monetary loss from their customers that are not properly insured. When it comes to insurance tracking, lenders want to make sure they’re asking the right questions so they can get a better understanding of how to mitigate insurance and risk exposure to make a positive impact on their business.
Auto dealers, lenders, and finance companies need to effectively track their customers’ auto insurance status so they can stay on top of every update and keep their company safe from any unexpected loss.
Accidents from uninsured vehicles happen all the time and if a customer is involved, and the lender is unaware of their insurance status, the company can take a hit leading to loss of revenue across the board.
Verifacto’s insurance tracking allows lenders to efficiently monitor and minimize insurance risks. The platform also provides better communication with customers and explains how to fix their insurance deficiency. To ensure an increase in customers that drive with proper insurance coverage, the system automatically follows up with each customer until the risk has been resolved.
If you’re an auto lender considering adopting insurance tracking, here are 5 important questions to help you make the right decision.
What is insurance tracking?
To better understand why it’s crucial to have an insurance tracking platform, lenders need to fully understand what insurance tracking is. Insurance tracking is simply the process of monitoring customers’ insurance information to make sure the lender’s loan collateral remains protected. If the customer loses their insurance or was improperly insured to begin with, and they’re involved in an accident, the lender can take a major hit resulting in the loss of money.
That’s why it’s necessary to stay up to date with insurance tracking. The tracking process involves gathering, maintaining, and updating information on customers’ insurance, so the lender is fully invested in the process.
How is insurance data gathered?
Insurance tracking comes from many different sources. It can be gathered from physical sources such as phone calls and faxes or electronically from insurance carriers themselves. An insurance tracking platform, like Verifacto, allows lenders to gather data electronically in the most cost-efficient and organized method by giving them more control and visibility of their customer’s profile and providing real-time insurance coverage data.
Staying up to date on your portfolio’s insurance status should be the goal of any insurance gathering process. Having data fall through the cracks can end up costing lenders.
What does insurance tracking do for my customers?
An electronic insurance platform reaches out to customers if their insurance lapses or they’re not properly insured. In most cases, customers will be fully insured and will never be contacted. But for those that can cause a risk to lenders, insurance tracking acts as a reminder. Contact can be initiated through text and email or call, if necessary, to handle outstanding issues.
Once customers become aware there is an issue with their insurance, it turns into a compliance issue and the customer will take action immediately rather than have force-placed insurance, such as Collateral Protection Insurance, on their vehicle or even have their vehicle repossessed.
Since everyone involved is more automatically engaged, this leads to better communication and immediate action. Customers can also receive email alerts for more competitive insurance offers so they can choose the best option for their lifestyle.
What kind of impact does insurance tracking have on my business?
As a lender, you should have the power to reduce insurance-based losses and manage your risks daily. Insurance tracking helps lenders receive data and exposes risks that are currently happening so you’re never in the dark. Notices such as improper or canceled coverage with customers are more difficult to determine without constant insurance tracking.
An insurance tracking service routinely checks customers’ insurance status for any issues which might leave lender’s taking the hit and with more regular and reliable communication, customers can take action to fix any issues to help lenders reduce losses on investments now and in the future.
Insurance tracking helps save lenders from the unexpected.
Why should I consider an insurance tracking service?
Insurance tracking can be tedious and time-consuming when you’re communicating with all of the parties involved. Since inhouse insurance tracking involves manual labor, there is a higher chance of potential errors. If insurance issues are not handled promptly, this can be very costly for your business.
An insurance tracking service can provide a platform which improves your company’s efficiency while also being user-friendly to both lenders and customers. An insurance tracking service provides lenders with monitored and accurate data so the focus can be on your business and its goals while feeling secure in your risk management.
At Verifacto, we want you to feel confident in your decision to enlist the assistance of an insurance tracking service and this can be done by asking the right questions. Our company is a leading provider of cloud-based software which allows auto lenders and dealers to effectively track their customers’ insurance status. We do this by providing cutting-edge technology that allows you to quickly and easily access data and communicate with customers to resolve any insurance red flags.
We invite you to try a demo today and see how an insurance tracking service can make your life easier while also helping you save money.
Give us a call at 678-783-8123 or email us at firstname.lastname@example.org.