Customized Loan Protection for Finance Companies and Specialty Lenders
As the industry leader in portfolio protection, State National can help increase your bottom line with affordable, hassle-free solutions for you and your borrowers. Take advantage of outstanding services like Add1 Total Protection, Collateral Protection Insurance (CPI), Monthly Auto Protection (MAP), and Claims Advocacy & Recovery Services (CARS). These programs make it easier than ever for you to get portfolio protection tailored to your specific needs — plus, they’re all backed by the exceptional service and advanced systems our clients have counted on for years.
Collateral Protection Insurance: Elevate Your Risk Mitigation Strategy
We understand the challenges faced by finance companies in today’s dynamic auto finance market. The high cost of funds, increased delinquencies, and decreased originations create a challenging landscape.
That’s why we’ve created programs intentionally designed to fit your specific business goals. With our integration of advanced tracking technology and flexible, customizable insurance products, we offer tailored solutions for nonprime and subprime lenders. This ensures increased borrower compliance, leading to lowered charge-offs and improved profitability.
Tracking is Essential – But Only Half the Picture
For over 50 years, State National has been a pioneer in portfolio protection. While tracking of borrower insurance status identifies the risk that already exists, our approach goes beyond awareness to proactively assist you in removing that risk from your portfolio.
Lenders who rely solely on tracking face uninsured borrower rates of up to 60%, leaving financial stability vulnerable. Our solution encompasses both tracking and lender-placed insurance, reducing uninsured rates and minimizing charge-offs.
Tracking is a crucial initial step, offering insight into the existing risk within your portfolio. However, beyond risk awareness lies the key to better financial outcomes: risk mitigation. When combining tracking with a lender-placed insurance program, today’s auto lenders experience substantial savings.
How Does Tracking + Insurance Beat Tracking Alone
- First, the rate of uninsured borrowers sees a significant decrease. In many cases, notifying borrowers about potential policy placement prompts them to secure the required insurance. Remarkably, our average uninsured rate for subprime finance companies is less than 20%.
- Second, our lender-placed coverage translates to notable reductions in charge-offs resulting from damaged repossessions. In fact, we can cut your charge-offs by about 30% — a value-added benefit at no additional cost to you.
Synergy of Technology and Portfolio Protection Programs
Our CPI solution combines the latest in technological advancements with affordable, collectible portfolio protection programs. We believe in providing you with cutting-edge fintech tools to mitigate risk effectively. With options tailored to benefit both borrowers and lenders, you can experience substantial reductions in charge-offs. Our unique blend of advanced technology and flexible, strictly compliant insurance products ensures a stronger bottom line.
Leveraging AI for Seamless Insurance Tracking
Experience faster and more accurate insurance tracking through our exclusive WRAP (Web-Based Robotic Automated Processing) technology. Custom-programmed software bots automatically extract insurance information from insurer websites and update our proprietary InsurTrak tracking system. This AI-driven approach guarantees increased speed, accuracy, and a portfolio with significantly reduced risk.
Revolutionizing Borrower Communication Through Text Messaging
Our unique turnkey solution for texting engages borrowers where they are — their phones. Unlike other insurance providers in our industry, we offer a comprehensive and interactive texting solution that allows borrowers to reply with images or upload information from their mobile devices.
Compliance that puts you at ease.
It’s important to you, so it’s important to us. Each program, from Add1 to comprehensive CPI, is backed by meticulous recordkeeping that makes sure you stay compliant with all applicable insurance regulations — and it’s fully transparent, so you can easily demonstrate it at any time.
Simple to implement, simple to use.
- We’ll get you set up in as little as 6 weeks.
- InsurTrak, our easy-to-use online system, makes the entire process run quickly and smoothly.
A full range of options to fit your needs.
Contact us to learn more about:
Add1 Total Protection (Add1) – Protection from total losses with less risk of default. An industry first, Add1 offers a whole new level of flexibility in an affordable, easy-to-administer program from protection against total losses. Place just one policy, then collect from customers and pay us monthly. By covering only total losses, you keep premiums low and minimize the risk profile impact of your borrowers, helping to reduce delinquencies. The program requires no changes to your servicing system while providing complete insurance tracking, reporting, and customer service. Contact us to learn more.
Post Paid Protection (P3) – Monitor borrower insurance status, encourage borrower compliance, and reduce charge-offs. Lower premiums offer cost-effective protection that is affordable for borrowers and highly collectable by the lender, with no risk to the lender of uncollectable charge-offs. P3 is customizable to meet the risk tolerance of the lender and price point to the borrower, and includes notifications to borrowers. Contact us to learn more about truly unique, fully tracked portfolio protection products designed specifically for subprime lenders.
Collateral Protection Insurance (CPI) – Our solution is built on advanced technology and customer support that minimize the impact on your borrowers and your staff like no other provider. With more than 50 years of experience, innovation, and commitment, State National is the proven leader in CPI. Today, you can turn to us for the industry’s broadest protection for you auto portfolio’s bottom line.
Claims Advocacy Skip Recovery (CARS) – This combination of Skip Tracing, Repossession, Remarketing, and Outside Insurance Claims Advocacy mitigates losses, reduces internal expenses, and takes the workload off the lender’s staff. CARS is offered in connection with our portfolio protection programs at a reasonable cost. All CARS services are fully integrated with InsurTrak for the ultimate in transparency at every stage of the process.