What is Repossession Insurance?

Mary McMahon
Mary McMahon

Repossession insurance is an insurance product designed for people and companies in the repossession business. A person or company who participates in repossessions can obtain insurance to cover the risks that come up in the course of the work. This specialty insurance product is available from a number of different firms, and it is advisable to get several quotes for comparison before selecting a policy.

A repossessed car.
A repossessed car.

The scope of a repossession insurance policy varies. Generally, the policy covers liability for issues ranging from improperly securing a vehicle when it is being towed to injuries caused by a repossession action. Some of the coverage is similar to that for regular car and boat insurance, with the repossession agent being covered for accidents that arise while handling vehicles for repossession. The liability can also cover wrongful repossession suits, with the insurance providing coverage for damages awarded by a jury, and often offering assistance with locating an attorney to defend the repossession agent in court in the event of such suits.

A person returning keys to a repossessor.
A person returning keys to a repossessor.

Another aspect of repossession insurance is accidental death and dismemberment insurance (AD&D), designed specifically for repossession professionals. People who work in this industry may have difficulty getting AD&D coverage from other insurers because of the higher risks associated with their work. Insurance companies that handle repossession insurance can offer AD&D as a separate policy or a rider on an existing policy to provide coverage in the event someone is killed or permanently injured on the job.

Companies involved in repossession can carry a blanket insurance policy for their facilities, vehicles, and personnel. Freelancers in the industry may obtain their own policies to make sure they are properly covered for events that may arise during repossession activities. Liability can get quite expensive, especially when it comes to personal injury, and carrying repossession insurance is usually strongly recommended.

Insurance brokers can provide information about policies available from a number of sources, offering a compare and contrast breakdown of different policies, the coverage offered, and their pricing. People can also call around personally to insurance companies to get information about repossession insurance, and assemble their own chart for comparison purposes. Some insurance companies have competitive pricing schemes and may be willing to adjust their rates if presented with a lower quote from another company, and people also usually qualify for package or bulk discounts if they purchase several insurance products from a company at the same time.

Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a wiseGEEK researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

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