How does your skip coverage measure up?

Managing risk is both an art form and a science. Understandably, many auto lenders fear making the wrong collateral protection insurance choice. Although charge-offs at U.S. banks decreased 0.28 percent from fourth quarter 2014 to second quarter 2015, a loss is a loss and the goal of all lenders is to keep repossessions as low as possible and minimize risk to the best of their ability.

With CPI, skip coverage is one of those perceived risk mitigation tools. It protects lenders when borrowers are unable to pay on their loans and/or keep up with their state obligation to pay auto insurance premiums. However, not all skip coverage is created equal.

A proficient provider of this vital auto lending risk management component will be armed with tools and resources to give your credit union the best opportunity to recover its collateral and maximize the return on its investment. This could include:

• a vast network of reliable partners that gives your credit union access to volume-based rates that can save you money and help you achieve the highest return on your assets.

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