What Is Single Interest Insurance?
Single interest insurance, or vendor single insurance, refers to a type of policy that protects the property a vendor or lessor sells or leases to a customer on installment, according to AllBusiness.com.
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Loss Payee
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With single interest insurance, the insurance carrier pays the vendor in case of loss. The vendor can pass the cost of the insurance policy on to the customer in most states.
Subprime Borrowers
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Payment default by customers represents a major concern. Finance companies may require vendors to purchase single interest policies to cover customers who have credit problems.
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Protection for Automobiles
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Policies for automobiles represents a type of single interest insurance that vendors often purchase. These policies may cover vehicle theft, nonpayment by a buyer or lessee and instances when a lien is not recorded on the title.
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