By Mike Jones, President & CEO of autopom! Insurance Services, LLC
autopom! Insurance Services, LLC is proud to be partnered with Mercury Mechanical Protection a division of Mercury Insurance Company, to bring consumers Mercury Protect! Mercury Insurance Company is one of America’s most respected insurance companies. Mercury is a provider of first-class vehicle service agreements ideally suited to lenders, especially credit unions. Mercury Protect is Mercury’s newest program offering.
Delinquencies and Default Loan Exposure
With recent high inflation and an uncertain economy looming, Credit Unions and other financial institutions face a difficult challenge in controlling delinquencies and default loan exposure, especially on vehicle loans.
As a lender, you understand that financing an automobile is a significant responsibility that requires careful consideration of the borrower’s ability to make payments and the potential risks associated with the vehicle. Unexpected breakdowns can result in missed payments and, in some instances, default. Therefore, lenders must find ways to protect their bottom line while providing additional security for the member.
Member And Asset Protection
One solution that can help provide financial protection for members and protection of the institution’s assets is to increase the number of approved loans that include vehicle service agreements.
Vehicle service agreements can help reduce the risk of loan delinquencies and default, as they provide coverage for unexpected mechanical breakdowns that could otherwise be too costly for members to pay out-of-pocket. Without this protection, borrowers may be at higher risk of becoming delinquent and defaulting on their loans due to the costs associated with unexpected breakdowns and repairs.
Credit Unions can confidently offer their members a vehicle service agreement backed by American Mercury Insurance Company, knowing that if a mechanical breakdown occurs, the Mercury team will take care of the member and the Credit Union will be far less likely to field complaints from upset members.
autopom! Insurance Services, LLC
Since 2010, autopom! Insurance Services, LLC has served as an agent for Mercury Select Management Company, Inc. and has also worked with nine other providers. During that time, we have sold and provided service to thousands of policyholders backed by Mercury and other providers. Based on my experience, I can confidently say that Mercury has the highest satisfaction among consumers, making it the ideal choice for Credit Unions who want to provide the best possible experience for their members.
Mercury offers two types of vehicle repair plans:
- Full pay Term-Based Plans
- Mercury Protect Monthly Plans
Full Pay Term-Based Plans
Mercury Mechanical Protection Term-Based Plans typically provide coverage for a fixed number of months and miles, for instance, 60 months or 60,000 miles, whichever comes first. These plans work well for members who intend to keep their vehicle long-term and qualify for the extra cost to be incorporated into their loan. Mileage for term-based plans is added to the current vehicle’s odometer reading. In addition, term-based plans benefit credit unions since the total loss benefit and maximum liability claims are made payable to the lienholder if repairs are not being performed to assist with loan protection.
Mercury Protect Monthly Plans
Mercury Protect: Automatic renewal monthly Plans offer similar coverage to Term-Based Plans but members pay fees monthly and coverage never expires as long as the monthly renewal payment is made. Monthly plans are available for quoting and purchase 100% online! Monthly plans are best suited for members that may not qualify for the extra cost of term-based plans to be incorporated into their loan.
On A Personal Note
As a 45 year member of a local Credit Union I know from my personal experience that Credit Unions truly care for their members. That is why you want your members protected by the best companies in the industry, which is why autopom! is partnered with Mercury Mechanical Protection, a division of Mercury Insurance, one of America’s most respected insurance companies, to offer Credit Unions and their member’s first-class Term and Month-To-Month vehicle service agreements.
In conclusion, vehicle service agreements are a great way to mitigate delinquencies and default loan exposure for credit unions and provide financial peace of mind for members. Term-Based and Mercury Protect Monthly Plans provide first-class protection from mechanical breakdowns.
Message me today or call me at (949) 309-2526 today to learn more about how autopom! and Mercury can help your Credit Union and your members.