If you are the owner or operator of a car dealership or auto finance company, you likely face problems with uninsured borrowers. When these drivers get into auto accidents, your business suffers in a few ways. The customer usually stops paying on the loan, which will eventually result in having to pick up the vehicle. In addition to getting your collateral back damaged or unsellable, you will eventually have a charge off and lose a customer. If you are struggling to resolve insurance issues, collateral protection insurance companies will provide the solutions you need to secure your business from borrowers that have deficiencies in their insurance. But how exactly do they help?
Following is everything you need to know about the ways collateral protection companies enforce compliance and give you the control you need to reduce losses, increase revenue, and increase profitability.
At Verifacto, we will help your business meet and exceed its goals by using our specialized software to protect your portfolio from borrowers that have deficiencies in their insurance.
Collateral Protection Insurance Companies Should Enforce Compliance
At the point of sale, your borrowers sign an agreement, in which they commit to buying and maintaining sufficient collision and comprehensive insurance coverage.
However, some drivers will later change their deductible limits, drop their collision or comprehensive insurance, or cancel their insurance completely.
When this happens, a collateral insurance company can safeguard your assets by enforcing the customer to carry insurance that protects your asset. A good collateral insurance company will have a document management system to maintain records of when the insurance was cancelled, notifications to the customer, and control and manage the workflow of placing collateral protection insurance including documented compliance enforcement.
If the customer provides their own insurance along the way, then that needs to be documented along with properly refunding the customer’s account. A collateral insurance company should provide you with a compliance check list or have a system in place to make sure that you are always compliant.
Collateral Protection Insurance Companies Give You Better Control of Your Portfolio
With the advanced technology provided by Verifacto, you can automate your placed insurance program to have complete control over your auto loan portfolio. Using the innovative software provided by Verifacto, you can track every borrower and ensure they have the required insurance coverage. With one click you can start the process of collateral protection insurance.
With every state having their own regulatory requirements, your platform will monitor and manage the specifics for you so you can focus your energy on other important matters.
Along with those benefits, Verifacto’s technology will afford you advantages including:
- Easy to use management system.
- Insurance tracking
- User-friendly CPI and Insurance tracking dashboards
- CPI compliance
- Improved, simplified, and adaptable CPI workflow.
- CPI compliance in all states
- Enhanced customer communication
- Reliable technical support
Collateral Protection Insurance Companies Should Enhance Your Revenue
By enforcing collateral placed insurance, Verifacto will help you reduce insurance risks through increased compliance, automation, efficiency and control. By mitigating these losses and protecting your portfolio, you are guaranteed to increase your profitability and grow your business so it can thrive for years to come.
Contact Verifacto Today
When Verifacto’s platform is used to track insurance and manage CPI, the portfolio usually has over 98% of the accounts either on insurance or CPI. If you currently have CPI and you do not have 98% of your portfolio on active insurance or CPI, please call us today.
To learn more about our collateral protection insurance program and request a demo today, call us at 678-783-8123 or contact us online.
At Verifacto, we have made it our mission to maximize your profits by providing your business with the superior risk management solutions it needs.