One in eight licensed drivers is uninsured. And the number of uninsured drivers among subprime auto borrowers is even larger. Our numbers show that 35-40% of subprime auto loan borrowers are uninsured, while the uninsured rate is 10-15% for prime portfolios.
However, the story is more complex than the numbers reveal. Lenders must consider the loan-to-value amounts of their portfolio, the margins earned on loans, and how their profits can be compromised by claims as a result of this issue.
This webinar examines the credit risks posed by uninsured drivers and provides strategies for mitigating the risks faced by auto lenders.