Payment and Title Guaranty Insurance gives auto auctions and dealers peace of mind by guaranteeing each sale is fully protected by an established company that has earned the respect of the industry.


What is Payment and Title Guaranty Insurance?

Payment and Title Guaranty Insurance protects auctions against bad checks and failure to collect from buying dealers. It also protects against losses that result from the auctioning of stolen vehicles.

The charge is based on the number of cars actually sold at the auction. Auction Insurance Agency handles both the underwriting responsibilities and loss payment authority, enabling us to help prevent losses and to respond promptly with payment when they occur.

The auction industry is risky by nature. The average auction exposes itself to millions of dollars in transactions each month. At Auction Insurance Agency, we understand these risks and can often be the key to a satisfactory resolution when problems do occur. Regardless of the situation your auction faces, we are prepared to assist you with a talented staff of trained professionals.


What Does Payment and Title Guaranty Insurance Provide?

Loss Prevention:

The effectiveness of our insurance program is based on our excellent partnership with auction owners and staff. We understand that running a successful auction involves making quick,informed decisions. At the center of our unique loss prevention program is the KO book, a list of dealers on whose transactions we will not provide coverage. With this valuable underwriting tool, we are able to help our insured auctions prevent potentially costly losses.

Loss Recovery:

Our high rate of loss recovery reduces our overall insurance costs. Our staff is well-trained in effective loss recovery techniques. By working with our attorney, law enforcement officials and auctions across the country, we can quickly and efficiently recover many losses. In one instance, our recovery efforts took us all the way to Colombia, South America, where we recovered over $600,000 in vehicles. Our years of expertise and experience can be a valuable resource for any auction.

Why is Payment and Title Guaranty Insurance Necessary?

The auction industry has experienced dramatic growth in recent years, and with that has come the potential for equally dramatic losses. The prices of vehicles sold at auction continue to climb.Today, a problem involving only a few vehicles can create a substantial business loss. Catastrophic losses can and do happen, even at the most carefully managed auctions. Over the years, Auction Insurance Agency has found that some of the largest losses come from dealers who were once valued customers. Even dealers who appear to be trustworthy can turn out to be con artists who operate at auctions on a weekly basis.

Such losses paid by Auction Insurance Agency include:

  • A Missouri dealer sold 143 stolen vehicles through one auction over a period of four years. Until the FBI uncovered his operation and began investigating, the auction had considered him a good customer.

  • A Florida dealer wrote bad checks and drafts at several auctions retailed the vehicles and fled the country to Argentina. The auction’s losses totaled well over $1 million.

  • A California dealer used a network of representatives to write bad checks and drafts at nearly 20 auctions across the country. The total losses exceeded $8 million.
Auction Insurance Agency works with auction operators to make sure they are in the best possible position to prevent losses. More importantly, the insurance is the auction operator’s guarantee that a catastrophic loss will not mean financial ruin for the auction or its dealers.