Credit and Insurance Information Verification

Internal Controls

Administrative Controls

Prior to the purchase or lease of a vehicle, the driver’s license, traffic record and the credit of the customer or lessee should be investigated to ensure that the individual is in good standing. These forms should be prepared by the salesperson or credit manager and filed in the car deal envelope.

For leased vehicles, it is essential to verify that the lessee purchases adequate insurance coverage and the policy should name the lessor as “additional named insured”.