Turn your risk into a profit center.
It’s important that you know the difference between DCC and CPI in order to use the best product for your business model to protect your collateral AND benefit your customers. We can help your provide either, or both, products to your customer base through your own reinsurance company allowing you to capture all underwriting profit. Think about the FOUND MONEY you could capture that your customers have been paying third party insurance companies to protect YOUR collateral.
DCC is a reinsured waiver for Buy Here Pay Here dealers and/or finance companies to sell their customers instead of having them carry full coverage insurance. Debt Cancellation Coverage is an alternate way to cover your collateral, in which you are the beneficiary and in control instead of a third party insurance company.
In the case of a total loss DCC covers the total debt owed to the dealer which allows the dealer to get the customer into another car making payments again instead of having them leaving your dealership to shop somewhere else. The contract is reinsured allowing you to collect premium and reserve it in your dealer owned reinsurance company to pay claims. The total amount of premium you collect minus claims is the underwriting profit you will capture instead of having your customers send that profit to an insurance company. You will also stop paying employees to get your customers to pay someone else (the insurance company) and capture that premium for yourself! Imagine a large portion of your book of business paying you a premium every month, instead of paying an insurance company. You have that option. Profit builds fast! DCC is usually priced significantly less expensive for the customer than full coverage insurance which helps find them money for their car payment and other coverages like a vehicle service contract.
Customers must continue to carry liability insurance by state law!
Other Benefits:
In case of loss, you keep the vehicle to part out or salvage, not the insurance company.
Your employees call your customers to collect premiums for you, not an insurance company.
Customer retention.
Huge advantage over your competition.
Each state has different laws on how Debt Cancellation can be priced, deductibles that can be charged, and how the premium is collected. Please call us for more information on how DCC would work for your business.
CPI, Collateral Protection Insurance, is a force placed insurance product that is placed by the creditor to protect their interest in the vehicle against physical damage should the customer fail to obtain or maintain physical damage insurance as required in the credit agreement. The customer is responsible for the cost of the CPI premium. The product allows BHPH dealers and finance companies to protect their collateral and reduce risk in their portfolios.
The best news for you is this program can be reinsured in your own reinsurance company so that you capture all of the underwriting profits from this program. Instead of purchasing CPI or a similar product from a 3rd party vendor, depending on your book of business, you can send the premiums to your own insurance company and reap the rewards.
CPI fulfills your customer’s insurance requirement on the credit agreement but does not provide bodily injury, no fault or liability insurance for your customer and does not comply with any state financial responsibility law on their behalf. Your customer must obtain and maintain the state required liability coverage on their own.
Have the peace of mind in knowing your customer’s have signed an agreement that protects your interest. If they fail to provide adequate insurance coverage or allow their insurance to lapse then you can protect your collateral at your customer’s expense. They will begin to pay you a premium each month for the collateral protection insurance instead of paying their insurance company for comprehensive and collision coverage!
This program is available in most states and is subject to laws and regulations of the state(s) that you will be doing business in.
Do you have the money to cover losses due to your customer’s lack of responsibility of keeping insurance to protect your collateral? It is time for you to cover your risk with CPI to keep your customer’s on the road and your collateral covered. Be smart, give us a call today to get started!
