Jim Gilpin
By Jim Gilpin on October 25, 2023

VSI Insurance for Lenders: Protecting Your Portfolio

Unexpected events like accidents, theft, or natural disasters pose significant financial burdens on a borrower, negatively impacting a lenders’ ability to continue receiving loan payments. Vendor Single Interest (VSI) insurance is a blanket insurance that protects the lender in these circumstances.

Sometimes referred to as LSI Insurance (Lender Single Interest), VSI is a proven single interest insurance product used to transfer the collateral risk from the lender’s portfolio, allowing the lender to focus on managing credit risk. 

Miniter Group is an industry leader in VSI placements and we’ve written numerous detailed articles to help you determine if this solution is right for your institution. 


Vendor Single Interest (VSI) insurance is a specialized form of coverage that provides a crucial layer of financial security, ensuring that the lender's investment is safeguarded. When mitigating risk of a vehicle portfolio, lenders utilize either a VSI or CPI solution.


Key Benefits of 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. We provide the following benefits:

  • 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

In addition to the aforementioned lender benefits, Miniter Group has noted two key added values over the years:

  • Improve Borrower Relationships: Eliminate customer dissatisfaction from rescheduled, higher monthly payments.
  • Consistent reduction in charge-offs: Annual net charge-off reductions from our clients range from 10% to 18%.



Vendor Single Interest (VSI) insurance is a powerful tool for protecting your portfolio, It simplifies the insurance process, reduces financial exposure, and enhances borrower relationships. Understanding the benefits of VSI insurance allows you to make informed decisions to safeguard your investment, providing peace of mind and long-term stability.

For a highly comprehensive view of VSI, please read our article: Miniter’s Complete Guide to Vendor Single Interest Insurance (VSI).

Please feel free to reach out anytime and Ask Us Anything.


Published by Jim Gilpin October 25, 2023
Jim Gilpin