Lender Vehicle Solutions
Miniter Group uses outsource services and custom underwritten insurance policies to transfer collateral risk and recover funds to help improve the profitability of our lender’s vehicle portfolios.
Miniter Group has provided VSI Insurance, CPI Insurance, skip tracing, and lien-holder outsource services for over 20 years. We are the largest provider of VSI Insurance and the only VSI provider with in-house skip tracing.
The tabs below provide detailed information about the lender vehicle solutions we offer. Maximum benefit can be realized using VSI Insurance or Collateral Protections Insurance in conjunction with one or more of our outsource recovery services.
Blanket VSI Insurance also called LSI Insurance (Lender Single Interest) is a proven single interest insurance product used by vehicle lenders.
Miniter group delivers VSI Insurance with a unique approach that enables rate stability to the lender in both good and bad economic cycles. Using this technique, one of our lenders has maintained the same low VSI rate since 2003 and consistently achieves annual net charge-off reductions from 10% to 18%. To learn more about rate stability, read Miniter’s Complete Guide to VSI Insurance.
Blanket VSI involves charging a small premium to the borrower at loan origination, which can be excluded from the APR in most states. The premium is then used to pay for collateral and skip losses that occur after repossession.
Miniter group delivers our blanket VSI programs with a unique approach that ensures rate stability to the lender in both good and bad economic cycles.
- Reduce charge-off expense 10% to 18%
- Add 5 or more basis points to portfolio profitability.
- No insurance tracking
- The borrower pays the premium at loan origination
- Premium pays repossession damage & skip claims
- Rate Stability
Collateral Protection Insurance is used to transfer physical damage, theft and other perils associated with consumer and commercial vehicles. CPI Insurance is a Lender-Placed Insurance product that works with Miniter Group’s Borrower-CentricSM Insurance Tracking system.
Collateral Protection Insurance Policies are dual interest policies, meaning that both the lender and the borrower will have coverage under the policy.
- Broad Dual Interest Coverage
- Low cost to the lender
- Requires borrower vehicle insurance tracking
- Highly regulated
- The common name is CPI or vehicle force-placed insurance
- Skip Tracing, GAP Claim Service, and Primary Claim Service available
Learn more by reading the article: “A Detailed Review of VSI Insurance vs CPI Insurance”
Our Skip Tracing company Miniter Investigations, Inc. (MI2) was created in 2003 so that Miniter Group could control the skip tracing investigative workflow. Having skip tracking in-house has two major advantages over outsourced (4th party) skip tracing.
- Our policies and procedures follow the strict regulatory requirements of the banking industry.
- Procedures can be customized by the lender.
- We repossess on behalf of our lenders. If the vehicle is not recovered, we continue to skip trace with no questions.
- Best locate ratio’s in the industry
- Unsuccessful repossession attempts continue to be skip traced – No questions
- Experience agents and private investigators
- Procedures customized by the lender
- State of the art investigative tools
With the unprecedented increase in vehicle skips since 2015, Miniter Investigations is rapidly expanding our skip tracing team to service all lenders outsider of our VSI & CPI insurance products.
Learn more by reading the article: “The Changing Landscape of Vehicle Portfolio Insurance“
Miniter provides GAP claims service for both the GAP contracts we sell as well as for lenders who finance GAP contracts from their dealers.
Dealer GAP contracts are debt cancellation contracts, not insurance policies. When the lender agrees to accept these contracts as part of the vehicle financing, the lender is agreeing to cancel any GAP debt if the borrower’s car is a total loss. The lender must file a claim with the dealer’s GAP provider to be reimbursed for the debt that was forgiven.
Miniter Group has years of expertise working with hundreds of dealer GAP providers, which enables us to get the best possible settlement of your GAP claim.
- Knowledgeable staff focused on GAP claims payments
- Claim processing to ensure maximum recovery
- Claim payment reports by GAP provider
- GAP Compliance monitoring by State
Learn more by reading the article: “An Insiders View to GAP Claims Payments”
Each year, lenders fail to recover millions of dollars of lien-holder claims payments from their borrower’s primary insurance companies. When a lender receives a repossession condition report with physical damage, the loan servicing department may not have the tools to identify the borrower’s insurance company, or the expertise to maximize claims payments.
Insurance companies know that bankers are not insurance experts. In our experience, they tend to “deny first” once they know they are dealing with a banker. They will quote some detail of the borrower’s insurance policy that the lender has neither the time nor the expertise to research. Without the proper expertise to respond to the denial, a legitimate claim payment may be missed.
- Expert staff focused on lien-holder claims payments
- Expertise on auto policies in all 50 states
- Insurance discovery tools for last known borrower insurance
- Claim payment litigation history with many borrower insurance companies
- A/B testing to prove our recovery effectiveness
Outsourcing your Lien-Holder Claims to Miniter will put our insurance experts to work for you. We have tools to identify your borrower’s last known insurance provider, and we will work with these insurance companies to make sure they pay all legitimate lien-holder claims.
Learn more by reading the article: “What Primary Insurance Doesn’t Want Lien-Holder to Know”.
Take a deep dive into VSI insurance from the eyes of a 20 year veteran who has underwritten VSI for some of the largest indirect vehicle lenders in the country. Vender Single Interest Insurance history, how it works, proper underwriting and benefits to the lender will be covered in great detail. Are you considering VSI Insurance? If so, this is a must read!
Repossessions are a part of doing business for a vehicle lender. In a good economy, these credit losses can be below 20 basis points (bps), in bad economies, we have seen these credit losses exceed 200 bps. A repossessed vehicle with physical damage compounds these losses.
Two of the largest indirect lenders in the country have run A/B testing between their loan servicing GAP claims processors versus Miniter Group’s GAP claims experts. In both cases, Miinter Group’s GAP claims experts exceeded the recovery targets defined in these tests.
This article provides a brief explanation that compares a Collateral Protection Insurance – CPI Insurance program to a Blanket Vendor Single Interest Insurance Program -VSI Insurance.
Prior to 2014, our claims data has shown Vendor Single Interest Insurance’s physical damage losses accounted for 90.5% of collateral losses, while skip losses made up the remaining 9.5%. However, Vendor Single Interest Insurance skip claims payments now represent 53 percent of total VSI Insurance payments up an incredible 550 percent since 2015. If you are experiencing higher than normal skips, this article will provide industry skip tracing data from on of the largest Vendor Single Interest Insurance providers in the country.