After an auto loan is originated, most of the profit for a lender is received throughout the term of the loan. This is based on interest and steady payments. However, making sure to collect all the payments with interest and know the car is always insured is not an easy task which leads to a huge overhead when the right software is not used.
When a borrower files for bankruptcy, lenders suddenly find themselves competing with other creditors trying to recover any portion of the borrower’s limited funds. In most cases, the lender is left wondering if, and when, they’ll ever recover their debt, and if so, how much can they possibly get back?
As an auto lender or dealer, you must take the correct steps involving auto insurance tracking. If one of your borrowers doesn’t have proper car insurance and they are involved in an accident, your company is now at risk. Auto insurance tracking is tedious. From keeping up with your portfolio to contacting every borrower, there is plenty of room for mistakes. This is where Verifacto’s game-changing software comes in.
Verifacto is a leading provider of cloud-based software that enables auto lenders and dealers to quickly and effectively track each borrowers’ auto insurance status. Our software provides a revolutionary and comprehensive platform to help lenders and dealers manage and reduce insurance risk at their company, so an uninsured borrower never falls through the cracks and your company remains completely risk-free.
Despite its importance, many drivers in the United States do not have auto insurance. When a borrower leaves a dealership, they might have car insurance at that moment, but due to difficulties in payment, they could end up allowing it to lapse leaving the lender’s collateral unprotected. Auto insurance prices have skyrocketed making it more difficult for drivers to maintain the proper coverage. When this happens, the lender’s business is suddenly at risk. This is where lender-placed insurance becomes highly valuable.
Dealers, financers, and insurance companies are taking a high and unnecessary risk if they don’t have a strong auto insurance tracking software system in place. Accidents from uninsured vehicles happen all the time and if a customer is involved in an accident and the lender is unaware of their insurance status, the company will take a major hit.
Verifacto’s Insurance Tracking Software is designed to take the stress off auto companies and help keep them on top of their borrowers’ insurance status at all times protecting them from unexpected losses. The insurance tracking platform provides better communication with borrowers and explains how they can easily fix their insurance deficiency. The platform also follows up with each borrower until the risk has been resolved ensuring nothing falls through the cracks.
One of the biggest concerns in the auto industry is ensuring borrowers can make their car loan payments on time. At Verifacto, our goal is to provide software that makes the loan payment process easy to use for both lenders and borrowers. The easier it is for a borrower to make a payment, the better the chance lenders will get their money on time.
Collateral Protection Insurance (CPI) is insurance used by lienholders to protect themselves from financial loss. CPI is also known as force-placed insurance because this type of insurance is not sold to a customer, however, it can be placed on a vehicle when the borrower does not have physical damage (comprehensive and collision) coverage.
In the automotive industry, it’s crucial lenders, dealers and finance companies effectively track their customers’ auto insurance status. This allows lenders to stay on top of every update and keep their company safe from potential liability or monetary loss.
Nearly every auto insurance tracking company claims to help you save money, but Verifacto stands apart from the competition with its unique technology to put you, the lender, in control so you’re never in the dark when it comes to your customers’ insurance status.
Manually sending out payment reminders to customers is a tedious and tiresome ordeal. Not only does it take up precious time, but if a payment reminder gets lost in the mail or misplaced by a customer, this puts a delay in your cash flow.
To reduce payment risks and save your company a lot of time, Verifacto provides automated payment reminders for lenders nationwide. This innovative technology results in effective accelerated payment collection for lenders and leaves borrowers satisfied with an easy-to-use payment process.
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.