Dealer Protection Program (DPP)
Miniter-DPP is designed for Buy Here Pay Here (BHPH) dealer-based finance companies. Our product combines the best features of both Collateral Protection Insurance (CPI) and a unique dealer based Spot Delivery Insurance product.
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How many times has a prospect promised to return with an auto insurance binder, yet you never saw them again?
With Miniter-DPP insurance, the dealer pays for a 30 day insurance policy which would protect the collateral and allow you to spot deliver the automobile. When they return with a paid insurance policy, the unearned premium would be refunded to you. In most cases, your installment contract allows you to bill the borrower for this insurance so there is little, if any, cost to you. The premium is billed directly to your credit card and you can renew monthly if the borrower does not obtain their own insurance.
How much money did your operations spend last year chasing renewal and reinstatement insurance documentation?
Miniter-DPP can reduce operational expense for those borrowers who are not able to consistently keep insurance on their collateral. Rather than managing their lienholder insurance notification and constantly chasing the borrower for insurance, Miniter-DPP will enable the BHPH dealer to proactively manage the borrower’s physical damage insurance requirements at the dealership. Miniter-DPP will eliminate lienholder insurance notifications on these borrowers and the expense to manage them.
Do you know how much profit you lost last year due to uninsured physical damage?
With Miniter-DPP you can eliminate these losses by immediately issuing coverage to protect your collateral for 30 days if the borrower becomes uninsured.
DPP PROGRAM BENEFITS:
- Drive Higher Monthly Sales Volume:
- Increase close ratios on walk-in customers
- Instantly Close prospects & customers that don't have collateral insurance
- Increase sales by insuring the previously “uninsurable”
- Increase Profitability:
- Reduce net charge-offs per repossession
- Reduce the number of repossessions due to uninsured borrowers walking away from the damaged collateral
- Minimize Collateral Losses:
- Transfer dealer’s financial collateral risk
- Instantly -place auto insurance to protect collateral if borrower is "unable" or "unwilling" to obtain their own insurance.
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MINITER DPP POLICY COVERAGES:
Miniter-CPI offers the "limited dual interest" feature of traditional creditor placed programs. The dealer/lender and their borrowers are provided with insurance coverage to protect collateral from loss due to physical damage or vehicle theft.
- If the borrower damages the collateral during the policy period, the dealer/lender is eligible to file a claim on the borrower’s behalf to cover the damage.
- In the event of repossession, the dealer/lender is also protected against physical damage which occurred prior to repossession.
- Collateral Types: Automobiles & Light Trucks.
Policy Term:
30 Days (renewable each 30 days)
Policy Rates:
Our master policy rate is underwritten for each dealer/lender. The premium charged to the borrower is this rate multiplied by the current outstanding loan balance at time of placement.
Settlement Options:
The normal settlement options for a borrower claim are the lesser of the:
- Cost to repair the collateral
- Actual cash value (ACV) of the property less net salvage value
- The outstanding net balance of the loan not more than 90 days past due.
Borrower Coverage:
The borrower is protected from physical damage or theft while the insurance is in force.
Premium Refunds:
Premium refunds are based on the number hours the policy was in force.
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To Download a DPP Application please click Here. |
