RSIG – Remove the Liability Before Removing the Vehicle

GUEST EDITORIAL

Issue: Client has issued new policy explaining debtor redemption from an auction facility is no longer permitted; requiring the repossessor to take the vehicle back once it has left their care, custody and control so debtor can redeem from the repossessor’s facility.

Background: It is most insurance providers position that accepting the return of a vehicle once it has left the repossessor’s care, custody and control is inviting a claim and complaint against the repossession company. From a risk management perspective this is not a good business practice and exposes the repossession company to potentially costly litigation, increased overhead costs, a higher potential for insurance deductible expenses and potentially increased insurance rates or non-renewal if a pattern of claims emerges from this practice.