Click here to request a FREE Quote or Call Toll Free 1-877-254-4180
Paying a lower rate for the same auto insurance is a good thing. Paying a lower rate for collections will not only cost you recovery dollars, it will defeat the purpose of cleaning and maintaining your accounts receivable.
Agencies that advertise lower rates and flashy recovery rates are only willing and able to collect the “easy money”. Agencies that work to clear your accounts, and help with your AR, are not only going to have a higher commission rate, but will actually recover more money for you (see comparison below). The bottom line is that a professional agency will provide you not only with a larger check each month, but the assistance you deserve in maintaining your accounts.
Many agencies only collect on accounts they feel are likely to pay, so most of your accounts are closed or deemed uncollectible from the very start. These agencies’ collection efforts are minimal, in order to maximize their profitability. You receive a check and a recovery percentage that sounds great at 40% or 50%. However, these agencies are computing their recovery percentages only on the active accounts. This means that all of the closed, returned, unable to locate, un-collectable and various other classifications are not being used to calculate your recovery percentage. This is a commonly used deceptive practice, but is easy for you to spot. Simply divide the actual collected funds you’ve received into the total dollars you have sent to the agency.