When to Charge the Customer for MVR

[lhpgators]

I'm in Florida and much of our auto business is non-standard. Some of our carriers require us to run and pay for the MVRs ourselves. Others run their own MVRs when binding.

Obviously the ones we run and pay for, we charge the customer for those.

My question is this...when is it ok to charge the customers for the MVRs run by the carrier. Sometimes the customer cancels quickly (within 30 days) and we end up getting a charge back. Sometimes when the MVR is run, something they "forgot" about pops up and we have to go to a different carrier. Sometimes there are unforeseen reasons that we receive chargebacks, and we can't get the customer to pay for MVRs after the fact. Is it ok to just automatically charge the customer for MVRs?

 

[MGBAgency]

I'm in Florida and much of our auto business is non-standard. Some of our carriers require us to run and pay for the MVRs ourselves. Others run their own MVRs when binding.

Obviously the ones we run and pay for, we charge the customer for those.

My question is this...when is it ok to charge the customers for the MVRs run by the carrier. Sometimes the customer cancels quickly (within 30 days) and we end up getting a charge back. Sometimes when the MVR is run, something they "forgot" about pops up and we have to go to a different carrier. Sometimes there are unforeseen reasons that we receive chargebacks, and we can't get the customer to pay for MVRs after the fact. Is it ok to just automatically charge the customer for MVRs?

At MGB Insurance Services LLC we are a preferred brokerage, but we have a lot of friends in the Non-standard auto business. I know a guy who charges a broker fee and if the client stays he just recoups the fee back to them in the form of a gift.

 

[BlockO]

I'm in Florida and much of our auto business is non-standard. Some of our carriers require us to run and pay for the MVRs ourselves. Others run their own MVRs when binding.

If a carrier requires you to run and pay for an MVR just to run a quote, they're not worth having... stick with the carriers that run MVR's right before binding.

with those carriers, as long as you sell a certain percentage of the MVR's you ran (usually 70-75% in most states), you get charged nothing.