VSI
Lenders Single Interest Coverage (LSI) or (VSI)

When you make a loan or lease on an auto, truck or other chattel, single interest protects the lender or lessor when the borrowers primary insurance has lapsed or been canceled.  The fee for LSI can be passed onto the customer in most states.  Physical damage insurance is not required on vehicles with a NADA average trade-in less than $3,000.  With this coverage, you are protected.

We Cover the Following:

Skip Coverage: If your customer skips, we locate the skip at no charge to you. If we do not locate the skip, we will pay you the actual cash value of the vehicle or the amount owed, which ever is less.

All Risk Physical Damage: Upon the time you repossess a vehicle and it has damage, we will write you a check for the damage.  If the vehicle is totaled, we will pay you the actual cash value of the vehicle or the amount owed, whichever is less.

Theft: Upon the time the borrowers’ vehicle is stolen and not recovered.  We will pay you the actual cash value of the vehicle or the amount owed, whichever is less.

Non-Filing: Non-filing covers you if the lien fails to be recorded on the title, customer defaults and you can’t repossess the vehicle.  We will pay you the actual cash value of the vehicle or the amount owed whichever is less.

The above is an outline of coverage. You will receive a policy for details of coverage.

Vendor Single Interest (VSI) - Blanket Vendor Single Interest Insurance (VSI), sometimes called Blanket Single Interest is an insurance product that has proven its value-proposition to automobile financers since 1972. The benefit to the lender is a reduction of net charge-offs from 7% to 17%. The lender is reimbursed when a delinquent borrower’s collateral is repossessed and there is either uninsured physical damage or the collateral is unrecoverable (skip)

Damage Claim:
The typical events that occur during a loans maturity that lead to a Blanket VSI claim is detailed in Figure 2. The borrower for whatever reason gets into financial trouble. One of the first bills that the borrower stops paying is their monthly auto insurance premium. The insurance company will cancel the borrower’s automobile insurance after 45 to 60 days leaving a risk exposure to the lending institution.