DPP Overview

Miniter Dealer Protection Plan (Miniter-DPP) is our second generation web-based system that is designed for Buy-Here-Pay-Here Dealers (BHPH) who are looking to take control of their collateral risk. Miniter-DPP provides “On-Demand” collateral protection insurance for “Spot Delivery” and “Uninsured Borrowers” while at the same time simplifying your borrower insurance tracking process.

Any time a consumer signs a loan (retail installment contract) or lease for a vehicle, the dealer/lender or lessor assumes on two types of risk: Credit Risk and Collateral Risk.

• The first risk is that the consumer will not make their payments as promised, forcing the dealer/lender, or lessor to repossess the vehicle to minimize their loss.
• The second risk is that the consumer fails to carry adequate insurance to repair or replace the vehicle be it damaged or stolen prior to repossession.

There are many insurance products and procedures to underwrite, limit and/or insure against credit risk. The Miniter-DPP product addresses prevention of collateral losses for consumer vehicle purchase, rent-to-own and lease transactions.

State Mandated Insurance Requirements

All states require an insurance binder for Liability Insurance (Personal Liability, Bodily Injury, etc.) prior to the consumer taking delivery of the vehicle. Comprehensive and/or collision insurance is not typically mandated by state insurance law, but is required by the dealer/lender promissory note to protect the loan collateral. Dealers today generally use Insurance Binders obtained from a local agent to document both liability and collateral borrower insurance.

Local insurance agents may issue a 15 day Insurance Binder for the Liability and Collision/Comprehensive Insurance. If the Policy is not paid by the consumer for three to six months in advance within 15 days, the policy never goes into effect, leaving the dealer or lender fully exposed to collateral risk.

Eliminate the “Lienholder Insurance Paper Mill”

BHPH dealers are constantly chasing borrowers for updated insurance documentation. The dealer must also consider the internal expense of continuously tracking borrowers’ insurance status.

1. How much time does your operations personnel spend managing lienholder insurance documents and chasing borrowers for insurance?
2. How many of your borrowers are constantly “cancelled” and “re-instated” on their auto insurance policy?
3. How many borrowers don’t have insurance?

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.

Increase Sales – Spot Delivery Insurance

At times, BHPH dealers lose sales when potential customers leave your lot to go obtain insurance. Rather than letting the potential borrower leave the lot and hope they return, Miniter-DPP can be used to “spot deliver” the vehicle. Miniter-DPP can be cancelled in a few hours or a few days once the borrower presents valid insurance. Some reasons for consumers not to be able to purchase proper coverage prior to taking possession of a vehicle include:

1. The vehicle was purchased over a weekend, in the evening, on a holiday or other times when their insurance agent is closed and no binder or Proof-of Insurance is immediately available.
2. The consumer is registering the vehicle out of state and there is no provision for temporary registration.
3. The consumer has a poor driving and/or insurance claims record, rendering them either uninsurable or in need of a “Non-Standard” insurance.
4. Many sub-prime consumers cannot get Proof of (Paid) Insurance for collateral coverage at the time of purchase as the consumer cannot afford to prepay for three or more months of Collision/Comprehensive Insurance.

Miniter-DPP allows the dealer to instantly transfer collateral risk to solve the need to spot deliver the car to the consumer and increase loan originations.

Miniter-DPP is simple to set up and BHPH dealers are fully utilizing the system in a few days. Miniter-DPP is designed so that you maintain full control over customer service, insurance tracking and insurance placement. These 30 day DPP policies are designed to transfer the dealer’s collateral risk for any length of time (from a just few hours to the life of the contract) one month at a time. While there may be less expensive options for some consumers, it is unlikely that dealers or lenders can instantly buy collateral insurance on-line for any consumer at any time.

DPP Overview	How DPP Works
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To Download a DPP Application please click Here.