What Is Insurance Verification?

What is Insurance Verification?

Proof Isn’t Good Enough to Protect Your Business

Trust, but verify. We’ve all heard that idea before, but what does it mean when it comes to your business?

Whether you run a car dealership, manage rental properties, or oversee short-term auto rentals or loaners, you expect your customers to carry insurance to protect them and you from unexpected losses.

But the traditional process of checking that your customer has active and adequate insurance is a pain. It’s time consuming, opens your business to compliance violations, and even after all that headache still might not protect your business if their coverage is inadequate, inactive, or just plain fraudulent.

So why check at all? Because without verification you could be putting your business at risk. The good news is that Modives makes insurance verification easy with CheckMy Driver for auto transactions and CheckMy Resident for property rentals, helping you protect your business without wasting time or money.

Why Do Customers Need to Have Insurance at Car Dealerships?

The simplest reason insurance verification for auto dealerships is important is that it’s required in most states. In nearly every state, someone needs to hold active and adequate auto insurance before title can be transferred to them for a car purchase or lease.

But the current process for verifying insurance is cumbersome and opens dealerships to many compliance violations if not handled properly. For example, did you know that it’s an FTC violation to receive or store pictures of customer licenses as part of an auto transaction? And that dealerships could be fined $46,000 for each picture of a license?

We recently spoke with a sales representative at a dealership who showed us hundreds of photos of licenses on his phone that he said represented the dealership’s common verification process. That’s millions of dollars in violations if the FTC ever found out, and they’ve started to crack down thanks to a new rule defining car dealerships as financial institutions.

Those compliance issues are solved with CheckMy Driver by Motives, saving the dealership and customers time while also improving the sales experience.

Through its automated, customer-driven experience, CheckMy Driver verifies your customers’ insurance is both active and adequate to your requirements. By creating a process your customer can complete on their own without your intervention, you can save time and get them closed while reducing the wait for F&I, improving their satisfaction by an estimated 12 points according to the London School of Economics.

Improve your customers’ experience, protect your business from loss and compliance violations, and save time with CheckMy Driver.


How Insurance Verification and Monitoring Protects Rental Properties

Most rental properties require that residents hold renters insurance in order to secure a lease. However, how many actually verify that insurance is active and adequate? And what happens if it’s cancelled or altered the day after move in?

Even if you verify coverage is active and adequate with your resident’s or applicant’s insurer—a rarity based on the conversations we’ve had with property management and owner-landlords—there’s the very real risk your tenant will be among the 45% of renters who cancel their coverage during the term of their lease.

With CheckMy Resident, Modives gives you the transparency you need into their coverage to protect your business and have peace of mind.

During the application process, or as an audit for your current residents, their renters insurance coverage is verified with their carrier to certify that it is both active and adequate. But what good is their coverage if it’s canceled or altered the next day?

CheckMy Resident automates monitoring, checking their insurance regularly to give you visibility into any alterations and providing them with embedded insurance shopping and mitigation options if it is changed.

Reducing Risk with Short-Term Auto Rentals

We’ve all rented cars, and most of the time we skip that insurance policy offered by the rental company. Sometimes they ask if we have our own coverage, but most of the time they don’t actually verify it.

And what if it’s not there?

No one wants to slow down the rental process, especially if it’s just booking a truck for a few hours to move some things or grabbing a car to pick someone up from the airport.

CheckMy Driver for auto and short-term rentals makes that process easy, handling verification quickly through its automated, consumer-driven process even before the renter arrives to pick up the keys.

There’s also no need to worry about their coverages changing between booking the reservation, grabbing the keys, and returning the car. CheckMy Driver can automatically monitor their insurance, notifying you and them of any changes to the policy, helping cover the gap with mitigation options.

From end to end, CheckMy Driver makes insurance verification and monitoring easy for auto-rentals, providing the transparency you need with its automated and innovative solution.

How Modives Stacks Up Against Traditional Insurance Verification Processes

Traditional Insurance Verification:

  • Often relies on proof not verification—accepting ID cards, declaration pages, and other evidence that could be outdated, innacurate, or fraudulent
  • Requires technical resources to implement API access where available to connect with carriers
  • One-time pulls to prove that insurance is active, with no attention or checks as to whether it’s also adequate
  • Adds time to your process, slowing things down and creating an inferior customer experience
  • If insurance is missing, no options to fix your issue

Insurance Verification with Modives Through CheckMy Driver or CheckMy Resident:

  • Carrier-certified verification, with real-time coverages available through our reporting dashboard
  • No technical resources necessary, you can be up and running in minutes with your first verification
  • Monitoring available to keep an eye on their policies, notifying you and them if any changes to coverages occur
  • Improving the customer experience and saving you time by automating the verification process, taking less than two minutes of their time and only a few clicks from you
  • Embedded insurance and risk mitigation options to provide coverage in the event theirs doesn’t meet your needs

Reach out today to learn more about insurance verification for property rentals through CheckMy Resident or auto transactions through CheckMy Driver.


Criminal Report

Criminal records coverage may vary due to (1) jurisdictions limiting what records are eligible to return and (2) TransUnion limiting records that do not meet its data quality standards. As of the Rev. Date, criminal records are available to return in:

Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Minnesota, Mississippi, Nevada, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington and West Virginia.

Rev. Date 01/10/24