Dispelling the Myth: Processing Auto Claims Will Cost Your Financial Institution Money

Posted by DIMONT on August 3, 2017 at 9:30 AM

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Having been in the business of helping loan servicers file insurance claims and recover losses for many years, we’re consistently surprised by a persistent myth that seems to almost be part of the auto finance industry’s collective consciousness: that the insurance claims process on damaged vehicles is actually a net loss to the lender.

The claims process can be time consuming and can generate low success rates when a lender who handles this process in house doesn’t have experienced licensed adjusters on staff. Labor intensive process combined with low success rates and cost of full-time equivalent (FTE) actually support this very myth and will make any CFO question if they are spending $2.00 to recover $1.00.

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Topics: Auto Insurance Claims

Important Steps Lenders Should Take for Insuring Their Automotive Loan Portfolio

Posted by DIMONT on June 15, 2017 at 9:30 AM

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Ensuring auto loan borrowers maintain adequate automotive insurance coverage on their vehicles is an important task often overlooked. Most lenders have excellent processes in place to ensure insurance coverage at loan origination, however they often fail to maintain a sound process to ensure proper insurance coverage is maintained throughout the life of the loan.

In many cases, by the time we are called upon to assist the bank in filing a claim with the insurance carrier for damage on a repossessed vehicle, the borrower has either changed or canceled their insurance coverage, or signed a policy with an abnormally high deductible or one lacking in overall coverage.  

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Topics: Auto Insurance Claims

4 Ways to Maximize Your Return on Auto Insurance Claims

Posted by DIMONT on May 25, 2017 at 9:30 AM

Key-Car-Orange1-300x121 - Auto.pngMany auto lending executives would be surprised to learn that filing insurance claims is one of the most effective ways to reduce overall loss severity on their repossessed auto portfolio.  Maximizing the institution’s return on auto insurance claims requires the right process be in place. Below we will share four ways to ensure your auto claims process is successfully managed.

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Topics: Auto Insurance Claims

Bringing Hazard Claims Adjustment Experience to Auto Loans

Posted by DIMONT on May 4, 2017 at 9:30 AM

Key-Car-Orange1-300x121 - Auto.pngThe insurance claims filing process is an exacting business. One mistake can jeopardize the recovery, costing the lender both time and money. It requires an expert to do the job right and to recover the maximum possible for each claim.

After more than two decades of helping mortgage loan servicers successfully navigate the complicated business of filing hazard insurance claims on real estate collateral, we found that the skillset required for success in that market segment lines up particularly well with what is required to help auto lenders recover losses on their collateral as well.

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Topics: Auto Insurance Claims

DIMONT Successfully Wraps Up 2016 Used Car Week Conference

Posted by DIMONT on November 17, 2016 at 9:30 AM

With the end of 2016 nearing, DIMONT has been busy traveling across the United States for the conference circuits in both the Mortgage and Auto Finance industries.  Over the last two months, we have been a part of two of the largest Auto Finance conferences and wrapped up the final conference of the season this week.

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Topics: Auto Insurance Claims

Proprietary Claims Processing System Enhanced for Auto Claims

Posted by Melissa Lingenfelter on October 6, 2016 at 9:30 AM

In a recent press release, DIMONT announced an enhancement to its proprietary system, Eldorado, in order to process claims on repossessed autos.  We want to share with you, some of the reasons it has been well received by auto servicers.

The Auto enhancement in Eldorado has been tailored to process claims effectively with an automotive industry vision as DIMONT makes a footprint in the sector.  Similar to Eldorado, users will still access Files, Tasks, and Notes, just as the client account teams (CAT) for hazard insurance claims processing do today.

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Topics: Auto Insurance Claims

Changing The Auto Claims Process: What to look for in your auto claims provider

Posted by DIMONT on August 30, 2016 at 9:30 AM

Key-Car-Orange1-300x121 - Auto.pngWhen auto lenders think about damage claims to recoup their losses on repossessed, damaged vehicles, they often think about the FTEs who provide a claims service as a part of their daily responsibilities, or the current vendor to whom they outsource.  The question is, are these employees and vendors doing enough?

The face of damaged auto claims has changed over the past few years.  Auto lenders are realizing that they miss out on thousands, and potentially millions, of dollars in claimable funds per vehicle they repossess.  With this realization comes the brainstorm to find a claims vendor who will recover these funds and maintain a compliant process while doing so.

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Topics: Auto Insurance Claims

Compliance and Auto Insurance Claims

Posted by Teresa Urban on May 24, 2016 at 9:30 AM

Key-Car-Orange1-300x121 - Auto.pngOur previous blog discussed the responsibility financial services companies have to manage every aspect of their compliance burden as effectively as they manage any other risk to their enterprise. Another area that should not be ignored in this respect is compliance as it relates to the processing of automotive insurance claims. This is one area where many institutions who service mortgage loans often fall short.

Expert risk managers excel at prioritizing threats and scheduling actions based on those assessments. Because home loans have a much higher balance per transaction than other forms of lending that an institution might be involved in, it is tempting to place a lower priority on automotive claims recovery when managers are deploying their compliance-related resources or allocating budget for expert third-party support.

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Topics: Auto Insurance Claims

Are Your Auto Insurance Claims Processes Compliant?

Posted by Tom Stover on March 24, 2016 at 9:30 AM

Key-Car-Orange1-300x121 - Auto.pngOutsourcing the auto insurance claims component can be advantageous for both auto finance companies as well as their clients. However, being successful within the auto finance industry depends primarily upon remaining compliant regulatory guidelines and investor and business requirements.

As mentioned in a previous blog, regulatory oversight for auto claims processing may be behind mortgage claims processing, but your compliance processes should always be up to date in preparation for future compliance and regulatory requirements.

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Topics: Auto Insurance Claims

Why Auto Insurance Claims Processes are Far Behind the Mortgage Industry and How to Turn it Around

Posted by Teresa Urban on March 1, 2016 at 9:30 AM

Key-Car-Orange1-300x121 - Auto.pngThere are several similarities between the processes for filing auto insurance claims on repossessed vehicles or damaged returns, and filing hazard claims for mortgagees. In the auto industry, an auto finance company notifies a service provider about a list of repossessed vehicles for inspection. The provider then travels to auction sites or uses technology to view images of the vehicles for specific damage, insurance carrier and date of loss. As expected, the date of loss is more difficult to identify with auto claims since historical photos of the vehicle do not exist. After the necessary inspections, the service provider runs reports for additional information, files the claims, remits the package back to the auto finance company and recovers as much money as possible for damages.

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Topics: Auto Insurance Claims