3 ways to be borrower-focused & risk aware

It’s getting more expensive every year to insure a vehicle, with the recent average premium tipping towards $1,800/year.  High monthly loan payments, plus auto insurance premiums, place financial strain on borrowers, resulting in many borrowers neglecting to protect their collateral with adequate insurance. Increased lapses in coverage are causing credit unions to adapt their collateral protection strategies to better mitigate risk of damaged, uninsured collateral. However, many lenders track insurance for the sole purpose of risk mitigation, neglecting to keep the borrower at the center of the program.

Enter…borrower-centric insurance tracking.

Holistic, portfolio-wide insurance tracking does more than monitor borrowers’ insurance information. It validates insurance coverage, determines which borrowers need to be reminded of their insurance requirements, sets a strategic cadence for notices, and places lender-held insurance on the collateral as a final protection measure.

Holistic insurance tracking protects more than your loan collateral — it also ensures that your relationship with your borrower is intact.  Keep reading for three ways to keep your borrower in the forefront as you remain risk aware.


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