{"id":557,"date":"2018-11-19T18:46:18","date_gmt":"2018-11-19T18:46:18","guid":{"rendered":"https:\/\/verifacto.com\/?p=557"},"modified":"2024-01-29T07:32:04","modified_gmt":"2024-01-29T12:32:04","slug":"how-use-lender-placed-insurance","status":"publish","type":"post","link":"https:\/\/verifacto.com\/es\/how-use-lender-placed-insurance\/","title":{"rendered":"How to Use Lender Placed Insurance"},"content":{"rendered":"

In the United States, many drivers on the road do not have auto insurance. They may come into your dealership or financial lending institution with insurance, but then let it lapse due to difficulties paying or because they never intended to carry insurance on the vehicle in the first place. In the last 5 years auto insurance prices have increased rapidly to a point where drivers with bad credit and one ticket will not be able to afford auto insurance coverage. In five U.S. states, 20% or more<\/a> of drivers have no insurance; countrywide that rate is even higher.<\/p>\n

In addition, some insurance companies have denied valid claims in an attempt to boost their bottom lines. Therefore, insured drivers that leave the dealership with their auto insurance will have a high risk of the insurance company not paying the claim when there is an accident and damage to the lender collateral. Let\u2019s take a look at lender placed insurance, what it is, and why you need it.<\/p>\n

What Is Lender Placed Insurance?<\/h2>\n

Lender placed insurance, also known as forced-placed insurance or collateral protection insurance, is placed on an auto loan by the lienholder. This insurance keeps the vehicle from being uninsured if the customer does not keep up on his or her insurance, or if it lapses or is not enough coverage on the vehicle. However, it doesn\u2019t include the liability insurance that is required in many states. In this case the borrower needs to purchase liability insurance coverage from another insurance company.<\/p>\n

Why You Need Lender Placed Insurance<\/h2>\n

Lender placed insurance will protect your investment in the vehicle you\u2019ve just helped a customer purchase. This insurance will cover the repair costs if the customer is in an accident and the vehicle is not insured, as well as if the vehicle is a total loss.<\/p>\n

How Verifacto Can Help with Lender Placed Insurance<\/h2>\n

Verifacto software can help your dealership or lending institution choose and enforce lender placed insurance on all your vehicles through our state-of-the-art CPI management system and Insurance Tracking platform that also tracks the CPI compliance per state. Verifacto also provides the borrower an insurance marketplace to purchase their liability insurance and save money by comparing prices and getting the best deal. Some of the benefits of using lender placed insurance and Verifacto are:<\/p>\n