Balboa Car Insurance Company Review
Balboa Insurance Group is a specialized insurance provider that offers tools, services, and special policies to lenders, including home loan and automobile lenders. Unlike a traditional car insurance company, Balboa does not provide consumer automobile insurance.
If you are looking for a new car insurance policy, you may have heard of Balboa Insurance Group. However, this company does not currently provide auto insurance in the traditional sense. Balboa insurance group does not insure vehicles personally owned by individual drivers. Instead, this company focuses on providing insurance solutions for the lending companies that provide consumer automobile financing.
History of Balboa Insurance Group
Balboa Insurance Group has been in business for more than 60 years. Over this time, the company has come to be known as a leader in providing risk management and loss mitigation solutions for financial firms, specifically those involved in auto lending.
Over its history, Balboa Insurance Group has provided a wide range of insurance services. While most of the company’s services are focused on lenders and corporate clients, Balboa has serviced individual clients as well.
In past years, Balboa offered a range of insurance services for individual consumers looking for property and casualty insurance. These services included life, homeowner, and automobile insurance. However, Balboa recently discontinued the consumer auto insurance segment of its business. The company does still offer consumer homeowner and consumer renter’s insurance in limited markets.
Over the more than 60 years of its existence, ownership of Balboa Insurance Group has changed hands multiple times. As the ownership has changed, so has the portfolio of products offered by the company.
In 2009, Countrywide Insurance acquired Balboa Insurance Group. Countrywide Insurance is owned by Bank of America, making Balboa a subsidiary of BOA. However, Bank of America sold Balboa in 2011. Balboa Insurance Group was purchased by Australia based QBE Insurance Group for an estimated $700 million. After the sale, Balboa trimmed back its portfolio of insurance offerings to focus largely on corporate customers.
Current Status and Operations of Balboa Insurance Group
Balboa Insurance Group’s United States headquarters is located in Irving, California. The company’s primary business operation is providing insurance and risk management services to lenders. Specifically, the company focuses on servicing banks and lenders who make both mortgage and automobile loans. The company’s operations are limited to the United States.
Balboa Insurance Group helps protect these companies against risks and losses associated with consumer defaults on automobile loans. This may take the form of insurance policies to protect lenders in the event that the lender’s customers are lacking collision or other coverage.
Balboa Insurance Group also offers a portfolio of proprietary products and services to help lenders minimize risk from the loans they have extended. These tools include both the RepoSource® and TrackSource® products.
RepoSource® is a special program designed to improve the recovery of lender assets and insurance proceeds on repossessed vehicles. The tool marketed as a streamlined system to help manage and move auto inventory through the process of repossession faster. This can help ensure that lenders are able to recover their assets more quickly, decreasing losses.
While these types of products are the primary focus of their business, Balboa Insurance Group has still maintained some of their consumer direct insurance products. Currently, they are offering homeowners insurance and renters insurance in the U.S. market. These policies were largely pushed by Bank of America and Countrywide lenders, the former parent companies of Balboa. These lenders encouraged homebuyers to purchase their insurance policies through their subsidiary, Balboa Insurance Group.
Since the purchase by QBE Insurance Group, the name and branding of Balboa has begun to be phased out. The organization is slated to be renamed and re-launched as QBE First.
Reviews of Balboa Insurance Group
Balboa Insurance Group has been reviewed by both independent agencies and consumers. Reviews on their services range from consumer reviews on personal policies such as renters insurance to corporate customer reviews on tools and products such as RepoSource®.
Generally, Balboa Insurance Group has received high marks by its corporate clients for insurance services rendered to lenders. RepoSource® and similar insurance products have been lauded for drastically reducing recovery time for lender assets and increasing the amount of assets regained.
On the consumer insurance products side, Balboa’s customer reviews are more mixed. In general, most consumers gave the company high ratings for accessibility and costs. However, customer service ratings are not as positive. Many consumer reviews complained about slowness in claims processing, unprofessional behavior from customer service representatives, and disorganized administrative processes.
For those looking for a new auto insurance provider, Balboa Insurance Group is not an option. The company is no longer offering consumer auto insurance, focusing instead on corporate insurance products for lenders. In fact, Balboa’s only remaining consumer products in their insurance portfolio are homeowner’s and renter’s insurance.