MADISON, Wis. — CUNA Mutual Group and State National Companies are collaborating to let members know that if they need auto insurance when taking out car loans they can get it from their credit unions.
The insurance offered is through the TruStage Auto Insurance Program, which is underwritten by Liberty Mutual.
The new capability helps protect members by making information about car insurance accessible at a time when members are most likely to be looking for it, CUNA Mutual Group said in a statement Thursday.
"This gets our marketing message to the member at precisely the time they have to make an insurance decision," said Dan Vogler, EVP at the $1.5 billion Anheuser-Busch Employees' Credit Union in St. Louis.
When members take out an auto loan at their credit union, they are required to maintain collision damage insurance coverage on their vehicle. CUNA Mutual Group and State National formed a tracked collateral protection insurance (CPI) alliance in 2009 to protect credit unions in the event borrowers default on a loan and uninsured collateral is damaged.
If it is unclear whether a vehicle is insured, State National will send the member a notice requesting proof of insurance. Beginning this quarter, those notices will contain information about the TruStage Auto Insurance Program, provided the credit union is a CPI alliance customer and also makes the TruStage Auto Insurance Program available.
"The cross-marketing initiative will help members learn about money-saving opportunities at a key moment in the credit union lending event," said Stephen Arnold, vice president, CUNA Mutual Group, TruStage Auto & Home.
Response rates for the TruStage Auto Insurance Program offer on CPI notices were 2.5 times better in initial testing, than usual direct response rates.
