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Will cover the value of your car
- Collateral protection insurance (CPI) is purchased by your lender if your auto insurance policy does not meet the requirements outlined in your contract. A CPI auto insurance policy will cover the value of your car.
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Aug 18, 2023 · Collateral protection insurance — or CPI — is a type of car insurance purchased by your lender to protect your vehicle if you don't have the required amount of insurance coverage. You'll pay more for CPI than standard car insurance, and the policy doesn't always offer full coverage.
- Lindsay Bishop
People also ask
What is collateral protection insurance?
Is collateral protection insurance a substitute for traditional car insurance?
When should collateral protection insurance be placed on my vehicle?
How do I avoid collateral protection insurance on a car loan?
Feb 9, 2024 · Collateral protection insurance isn’t a substitution for traditional car insurance, though it does provide an element of financial protection on the vehicle. The policy typically covers damages to your vehicle in the event of an accident or theft, similar to how collision and comprehensive coverage work.
May 29, 2024 · Collateral protection insurance, or CPI, is a type of insurance that protects the auto loan lender in case the borrower (i.e., you) lack the required insurance at the time their vehicle experiences physical damage.
4 days ago · What does collateral protection insurance cover? Collateral protection insurance typically covers physical damage to the vehicle. It may also include medical expenses and liability coverage.
- Ava Lynch
Nov 29, 2021 · Collateral protection insurance may be placed on your vehicle by the owner of your car loan if your auto insurance lapses. Learn how to avoid this expensive coverage.
Apr 1, 2024 · Collateral protection insurance (CPI) is a lender-chosen safeguard when borrowers lack full coverage car insurance. CPI coverage typically focuses on physical damage, including collision...
Jan 5, 2021 · Collateral protection insurance (CPI), also known as forced car or lender-placed insurance, is a policy that the lender can force on the motorist if he or she: Fails to purchase auto insurance; or. Fails to insure the car adequately.