{"id":547,"date":"2018-10-15T20:00:50","date_gmt":"2018-10-15T20:00:50","guid":{"rendered":"https:\/\/verisurance.com\/?p=547"},"modified":"2024-02-19T05:58:03","modified_gmt":"2024-02-19T10:58:03","slug":"what-is-collateral-protection-insurance","status":"publish","type":"post","link":"https:\/\/verisurance.com\/es\/what-is-collateral-protection-insurance\/","title":{"rendered":"What is Collateral Protection Insurance?"},"content":{"rendered":"

As an auto finance company or BHPH car dealer, one of your main concerns is risk management in the auto insurance industry. The responsibility of the borrower is not always guaranteed.\u00a0But with Collateral Protection Insurance<\/a>, or CPI, we can help mitigate that risk and help borrowers feel more responsible for the amount they are borrowing from a lender. If you\u2019re a lender, you may have had trouble ensuring borrowers, or helping them purchase adequate auto insurance to fulfill their loan agreement insurance requirements. Verisurance insurance tracking software can help your business provide adequate control, risk mitigation, and lending management all in one easy-to-use, comprehensive program. Let\u2019s look deeper into CPI and how Verisurance works.<\/p>\n

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Who is Verisurance?<\/h2>\n

Verisurance is the leading provider of cloud-based software that enables auto finance companies and BHPH car dealers to track customers\u2019 auto insurance status. Allowing instant and thorough management mitigation, and reduction of driver insurance risk through consistent electronic communication with drivers. Verisurance essentially increases properly insured drivers on the road, protecting your portfolio and finances by enabling the lenders to place CPI when it\u2019s needed and comply with CPI regulations. Verisurance\u2019s insurance tracking solution is very effective, easy to manage, and prevents human errors.<\/p>\n

What Is Collateral Protection Insurance?<\/h2>\n

Also known as lender-placed insurance, collateral protection insurance requires your customer to maintain auto insurance throughout the life of the loan. If they are not able to provide evidence of insurance within seven days of signing the loan, you can enforce the CPI addendum for your protection.<\/p>\n

Collateral protection insurance works well in an auto loan situation, but how does it work, exactly? A borrower signs the loan agreement and an insurance addendum. The addendum provides the initial CPI disclosures regarding the debtor\u2019s obligation to maintain insurance during the term of the loan and also requires the debtor to acknowledge the following:<\/p>\n

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  1. The debtor does have and will be providing evidence of physical damage insurance before taking possession of the collateral<\/li>\n
  2. The debtor will not be providing evidence of insurance and understands that CPI will be added in seven days at a disclosed cost to the debtor if he does not provide evidence of insurance.<\/li>\n<\/ol>\n

    With collateral protection insurance, only uninsured borrowers of lender-owned collaterals are affected. In addition, CPI insurance policies can protect borrowers as well by repairing a damaged vehicle. CPI is a win-win for lenders and borrowers, reducing the instability caused by uninsured drivers. Borrowers may, however, have to pay the premium charge for CPI.<\/p>\n

    CPI Tracking Will Help You and Your Customers Get Collateral Protection Insurance<\/strong><\/h2>\n

    Verisurance\u2019s innovative CPI solution module is designed with advanced compliance and tracking technology that lets you. As a lender, see and control your own portfolio insurance risk. What could be better than that? Since auto insurance costs have been increasing lately, lenders may be experiencing increased policy cancellations and more uninsured drivers. CPI can help with that — it\u2019s the most effective way to keep drivers insured in today\u2019s market.<\/p>\n

    Verisurance auto insurance tracking will:<\/p>\n