If you’re seeking a vendor who knows what they’re doing when it comes to VSI (Vendor Single Insurance), we look forward to answering any questions you may have.
As the largest provider or VSI, we’ve spent decades working with lenders and servicers to integrate these policies into the loan origination process ensuring our clients are better protected and more profitable.
Blanket VSI Insurance may also be called LSI Insurance (Lender Single Interest). Our unique approach 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.
How does Vendor Single Insurance Work?
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.
There are four coverages associated with VSI Insurance:
The two significant coverages, physical damage and skip, depend on the success of the lender’s repossession efforts:
- If the condition report of a repossessed vehicle shows physical damage, the lender files a VSI physical damage claim.
- If the lender’s repossession attempts are unsuccessful, then the lender will file a VSI Insurance skip claim.
Some highlights of VSI Insurance are:
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
Miniter Group has been placing VSI policies for so many years, we remember when the insured vehicles had cassette players. Put simply, there is no Vendor Single Insurance or LSI question we cannot answer. Please feel free to reach out anytime and Ask Us Anything.
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