As our country is still grappling with how the Coronavirus pandemic is shaping a new normal for society, many industries are recognizing that changes must be made to certain facets of their operations. This is certainly true within the world of financial institutions and lending in many different ways. Between dealing with the overwhelming number of applications from the Payment Protection Program and having to adjust lending operations with many working remotely the last thing a lender wants to hear now is that the Blanket VSI that protects their auto lending portfolio is being adjusted.
Unfortunately, the latter is the case for many community lenders who utilize Blanket VSI and are being told by their providers that their premiums are being raised despite not showing an increase in claims activity. In most cases, the premium raises are being done with the anticipation of an increase in claims because of an economic downturn, even if a lender has a clean claims history and isn’t expecting delinquency and loss issues.
At Golden Eagle Insurance, working with our partners to create long-lasting relationships has always been a priority. We recognize that an increase in claims is likely and that adjustments must be made to ensure Blanket VSI programs are viable for the long-term, however, we don’t believe every lender warrants increases in rate and deductibles.
We use our expertise, creativity, and flexibility to offer different options to our partners and do what makes the most sense for each. Some lenders will not need a change at all. Others may only need to implement a deductible or raise an existing one. Deductible changes can also be short term and reviewed month by month and lowered again as the economy rebounds. Additionally, we can remove certain coverages such as mechanical breakdown or towing. We recognize every lender’s situation is different and there isn’t one solution that should be used in all cases. By exploring these different options we have been able to provide customized solutions to our partners that are right for them.
If your Blanket VSI partner isn’t offering these options, perhaps it is time to consider a different provider.