Protecting your interests.
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.
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.
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.
CPI gives you 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!
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!
Call us today for more information at (804) 824-9533!