Standard Operating Procedure (SOP) for Insurance Verification

Benitez Auto Group

I. Purpose:

This SOP outlines the procedures to verify and monitor insurance coverage for customers under the Buy Here Pay Here (BHPH) program, ensuring all cars financed are properly insured.

II. Scope:

This SOP applies to all sales consultants and finance officers responsible for setting up and managing BHPH accounts at Benitez Auto Group.

III. Procedure:

1. Initial Verification:

Before the vehicle leaves the lot, ensure the customer has full coverage insurance (comprehensive and collision).
Verify that Benitez Auto Group is listed as the lien holder on the insurance policy.
Update the “Insurance Status” report with the necessary details.

2. Monitoring and Verification:

Periodically monitor each account to ensure that the insurance coverage remains active. Most customers only cover their cars for 6 months, so make sure to call after 6 months to confirm that the insurance is still in place.
If the insurance has expired, use the “Request Insurance” button on the BHPH account page in the vehicle section to send an SMS to the customer with a portal for them to upload their insurance.
Update the “Insurance Status” report accordingly after each verification process.

3. Communication:

Explain to customers the importance of maintaining full coverage insurance, including the risks and potential consequences of lapses in coverage, such as financial responsibility for any damage to the vehicle.
For non-responsive customers or those who repeatedly fail to provide proof of insurance, consider escalation procedures such as account suspension or vehicle repossession as per the company’s policies.

IV. Document Management:

This SOP should be reviewed at least annually, or as necessary, to ensure it remains effective. Any amendments must be promptly communicated to all affected personnel.

V. Approval:

This SOP has been approved by the management of Benitez Auto Group.

By adhering to this SOP, we maintain responsible lending practices that align with our commitment to both the success of our dealership and the financial well-being of our customers.