Vendor’s Single Interest (VSI)

Vendor’s Single Interest (VSI) insures a lender’s financed vehicle portfolio from damaged vehicle losses. Lenders purchase VSI in order to manage their risk and improve portfolio performance.

The Need

American Risk Services’ VSI program addresses a Lender’s problem of borrowers failing to maintain the required auto insurance to protect the financed vehicle. This issue leaves the lender’s portfolio exposed to potential vehicle collateral loss, resulting in charge-offs and diminished portfolio performance.

The Solution – VSI

ARS’ VSI is provided though a master insurance policy written to cover the lender’s portfolio. Coverage is provided for all new finance contracts or can be written to protect an existing vehicle portfolio. Many states allow the cost of the VSI program to be passed on to the borrowers.

VSI covers losses from theft or physical damage to repossessed collateral where the borrower has failed to obtain and maintain vehicle insurance coverage as required by the finance contract.

Additional coverage can be included in the policy such as:

  • Skip - losses due to the lender’s inability to repossess a vehicle because the lender cannot locate the borrower, co-borrower, or collateral
  • Confiscation - losses due to the lender’s inability to repossess a vehicle because the vehicle has been confiscated by a government official or court and the vehicle cannot be released to the lender
  • Conversion - losses due to the lender’s inability to repossess a vehicle because of the transfer of ownership to an innocent third party
  • Repossessed Property – losses due to the damage or theft of collateral while in the care, custody, or control of the lender after repossession has occurred

The Benefits

  • Portfolio performance is enhanced
  • Charge-offs due to uninsured vehicles are dramatically reduced
  • Portfolio performance is more predictable without the exposure to uninsured vehicle losses

Additional Information

  • Policies are written through A.M. Best “A” rated insurance carriers
  • Fast and efficient claims service
  • ARS exceeds the highest industry standards of security and compliance
  • SSAE-16 Certification (formerly SAS-70 II)


Kirk Saunders – Director of Sales

Joe McGinnis – Sales