WESTCHESTER, Ill. -

IAA is trying to make the situation easier for finance companies and insurance providers when a leased vehicle is severely damaged and considered to be a total loss.

On Tuesday, IAA announced an enhancement of the IAA Loan Payoff tool with the ability for insurance carriers to pay off leases from participating finance companies.

IAA estimated more than 5 million vehicles are declared a total loss each year, with up to 70% of those vehicles being attached to a lease or retail installment contract. IAA also said that leases account for about 30% of new-vehicle purchases, adding a level of complexity to the total loss process that can increase cycle time.

The company highlighted through a news release that IAA Loan Payoff is the first platform in the vehicle salvage industry to extend that functionality to pay off leases on total loss vehicles to its partners. The portal can create a seamless process for insurance providers to communicate with finance companies and other institutions that support vehicle leasing.

“With each new digital claims solution, IAA strives to ease pain points for its insurance provider customers,” said Tim O’Day, president of U.S. operations for IAA.

“Offering the ability to pay off leases is yet another way IAA is reducing cycle times for its customers and streamlining the total loss claims process for both providers and lenders,” O’Day went on to say.

Launched in November 2019, IAA indicated IAA Loan Payoff has thousands of finance companies in its multi-tiered network and has shown continuous growth.

“The platform has demonstrated unrivaled benefits by significantly reducing cycle time on positive and negative equity files,” the company said.

For more information on IAA Loan Payoff, visit IAAI.com.