Help improve auto lending profitability with embedded payment insurance
TruStage™ Payment Guard Insurance helps auto lenders grow revenue from new sources, improve secondary market appeal and mitigate risk. Learn more about how our embedded payment insurance is designed to help you attract new borrowers in an increasingly competitive market.
Get a competitive advantage with Payment Guard
As consumer lending evolves in an ever-changing landscape, embedded payment insurance gives auto lenders the opportunity to offer unique products, help reduce abandonment in online channels and help increase financial resiliency for borrowers. Payment Guard is designed to seamlessly integrate into the lending process and positively impact your business’ bottom line, helping expand your repayment options while curing delinquencies and decreasing charge-offs.
When looking at assumed costs for auto loan charge-offs in various scenarios where loan payment insurance is implemented, we found that auto lenders could save roughly $98 million in charge-off costs related to covered job losses and disability over five years.¹
Payment Guard is designed to help auto lenders:¹
Increase revenue
For every avoided delinquency or default, lenders could recognize the interest income that would’ve been lost when borrowers can’t make their payments.
Enhance secondary market appeal
For lenders who sell loans, embedded payment insurance could make their products more attractive to investors.
Reduce defaults
Ensuring borrowers with covered job loss could continue to make loan payments, often for up to six months, reduces the number of loans that end up in charge-off status.
Improve customer acquisition
Embedding loan payment insurance could attract new customers, reduce abandonment within online lending channels, improve lenders’ retention rates and decrease customer acquisition costs.
Differentiate offerings
Lenders could offer an attractive differentiated loan product by embedding loan payment insurance.
Regulatory compliance
As regulatory scrutiny of auto lending increases, offering built-in borrower protections may help demonstrate responsible lending practices.
Why Payment Guard?
Many lenders could achieve a 16% reduction in charge-off costs with embedded cash advance payment protection¹
An auto lender could save roughly $98M in charge-off costs related to job losses and disability over five years.
One online lender received a total financial benefit worth roughly 108% of the amount it paid in premiums.
Get your estimate today
Payment Guard has been shown to help reduce both acquisition cost and default rate. Learn how Payment Guard could help offset the premium cost with net savings for your portfolio.