Single Interest Insurance

DEFINITION of 'Single Interest Insurance'

Insurance policy for lenders or lessors to protect their security interest in stated property (e.g. cars) in the event of customer default. Financing companies sometimes require single interest insurance for subprime borrowers – people with marginal credit. In most states lenders are permitted to pass on the policy cost to the borrower/customer.

BREAKING DOWN 'Single Interest Insurance'

Single interest insurance for automobiles can include various kinds of protection for the seller/financing company or leasing company:
• skip coverage protection – for when a buyer/lessee fails to make ("skips out on") payment
• theft protection
• non-filing protection – for when a lien was not recorded on the title of a vehicle
• protection from physical damage to a repossessed vehicle

RELATED TERMS
  1. Title Insurance

    Insurance that covers the loss of an interest in a property due ...
  2. Leveraged Lease

    A lease agreement that is partially financed by the lessor through ...
  3. Personal Lines Insurance

    Property and casualty insurance products for individuals that ...
  4. As Their Interests May Appear (ATIMA)

    Text in an insurance policy that allows other parties to be added ...
  5. Third-Party Insurance

    An insurance policy purchased for protection against the actions ...
  6. Bureau Rate

    A standard price per unit of insurance set by a state's insurance ...
Related Articles
  1. Personal Finance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  2. Personal Finance

    Is Loan Protection Insurance Right For You?

    This coverage can keep you from defaulting on your loans when you're in financial trouble.
  3. Investing

    3 Reasons to Avoid Term Insurance

    Find out the reasons why term life insurance may not be for everybody, and why you may want to avoid it in favor of a permanent life insurance policy.
  4. Personal Finance

    How to Protect Your Income No Matter What

    What does it mean to insure your income? Here are a variety of ways to do it and some insights into when it might make sense to invest in income insurance.
  5. Personal Finance

    Why You Don’t Need Mortgage Protection Life Insurance

    Mortgage protection life insurance sounds great in concept - a guarantee that your mortgage will be paid off if you die unexpectedly. But take a hard look at what you get before choosing it.
  6. Personal Finance

    Intro To Insurance: Property And Casualty Insurance

    By Cathy ParetoProperty and casualty insurance is insurance that protects against property losses to your business, home or car and/or against legal liability that may result from injury or damage ...
  7. Trading

    Top Tips For Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.
  8. Personal Finance

    Add-On Insurance: Do You Need It?

    Insurance is important in certain situations, but there isn't always a need.
  9. Personal Finance

    Mortgage Protection Life Insurance Is Unnecessary

    Mortgage protection life insurance is a type of life insurance most people don’t need.
  10. Retirement

    How to Choose the Best Long-Term Care Insurance

    Here's how to find and select a policy that provides the best coverage for you.
RELATED FAQS
  1. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
  2. Is homeowners' insurance required by law?

    Learn why it is always wise to protect your home with insurance even if it is not required. Understand how high-deductible ... Read Answer >>
  3. Can I get renters insurance without a lease?

    Find out whether you need to have a lease before you can get renters insurance. Learn about policy coverage and what information ... Read Answer >>
  4. What are some examples of when insurance bundling is a bad idea?

    Learn about situations where insurance bundling may not be a favorable option. Bundling insurance is often a good idea, but ... Read Answer >>
  5. Which insurance policies do I really need?

    Your needs for insurance depend on your situation and can't be generalized for everyone, but there are a lot of options available. ... Read Answer >>
  6. What's the difference between casualty insurance and disability insurance?

    Casualty insurance is often called "property casualty insurance", and it provides insurance protection for your property ... Read Answer >>
Trading Center