What Is Collateral Protection Insurance (C.P.I.)?
Insurance Can Be Complicated. Let AutoMax Help.
What Your Lender/Lein Holder Requires …
In accordance with the Motor Vehicle Retail Installment Sales Contract that is used by AutoMax and by almost every lien holder in the state of North Carolina, you the Borrower agree to keep the collateral (your vehicle) insured against damage or loss until the balance you owe under this contract is paid in full. The contract you signed refers to this coverage as "Property Insurance". You are also required to list the Dealer or Lender as the Lien Holder on your Policy.
The two types of coverage your lien holder will accept that meet the "Property Insurance" requirements are listed below.
- The first is Collision and Comprehensive Coverage. Collision coverage pays the cost of repairing or replacing your car after an accident. The payment amount is often limited to your car’s actual cash value, as determined by the insurance company, minus your deductible. Comprehensive pays the cost of repairing or replacing your car if it is stolen, damaged in a fire, vandalized, hail, or another covered cause other than collision.
- C.P.I., or Collateral Protection Insurance, is accepted by some lenders. AutoMax does accept it in lieu of Collision and Comprehensive Coverage. C.P.I is often cheaper than traditional insurance. Some lender charge as much as $250 a month for C.P.I. AutoMax charges less than half of that. To find out if C.P.I. is right for you, keep reading below.
What the state of North Carolina requires to operate a vehicle …
The State of North Carolina requires you to have basic auto liability insurance. North Carolina law requires a minimum coverage of $30,000 per injured person, up to a total of $60,000 for everyone hurt in an accident, and $25,000 for property damage. This Basic Liability Coverage is called 30/60/25 coverage. However, basic coverage might not be enough if you are liable for an accident. You should consider buying more than basic limits. When you buy an auto policy, your insurance company will send you a proof-of-insurance card. You will have to show proof of insurance when are you asked for it by a law enforcement officer, have an accident, register your car, renew your registration, obtain or renew your driver’s license, or get your car inspected.
Highlights of the Collateral Protection Insurance offered by AutoMax …
- The cost is $89.00 per month. Potentially saving you hundreds of dollars a year.
- The price is the same for every customers regardless of driving record. If you have had tickets or accidents, then C.P.I. may be right for you.
- The price is the same for every customer regardless of age. If your insurance company is considering you an inexperienced driver then C.P.I. may be right for you.
- The price is the same for every customer regardless of credit score. If the insurance company is penalizing you because of your credit score then C.P.I. may be right for you.
- We never charge agency, payment or policy fees. If your first insurance payment is higher than your normal payment you may be paying unnecessary fees. Ask your insurance agent what kind of fees you are paying when you are comparing prices.
- C.P.I. covers both the buyer and the co-buyer for that one price. Most insurance companies add charges if you add the co-buyer or another driver to the policy.
- C.P.I. always has a $500 deductible. This deductible could be lower than what you have now potentially saving you money in the case of an accident.
- Your CPI payment is always due when your car payment is due making it easy to budget and ensures you are never late on your insurance. Insurance Payments are broken down to correspond with your auto loan payments. The cost is $89.00 per month which brings weekly payments to $20.53. Bi-Weekly Payments are $41.07.
- With C.P.I. all in-home drivers are covered. Some insurance companies would consider letting your son or daughter use your vehicle as unauthorized use which could result in a claim being denied.
- C.P.I. is only available to current AutoMax customers and only on cars financed at AutoMax.
Liability insurance is NOT included in the C.P.I. payment.
Did AutoMax force place C.P.I. on your account? If so, here’s why...
AutoMax requiresin accordance with the Motor Vehicle Retail Installment Sales Contract that you the Borrower agree to keep the collateral (your vehicle) insured against damage or loss until the balance you owe under this contract is paid in full. The contract you signed refers to this coverage as "Property Insurance". You are also required to list the Dealer or Lender as the Lien Holder on your Policy. If we forced placed C.P.I. on our account, it is because to failed to meet this insurance requirement. In the event your property insurance cancels an AutoMax representative will reach out via phone calls and/or letter to ensure that you do not have coverage elsewhere. We do not use third party vendors to manage the force place C.P.I. An AutoMax team member is always person that calls the customer and the previously listed insurance company make sure the required coverage in not place. We understand that sometimes our customers switch insurance companies and fail to notify us. That is why we always make several attempts to contact you before force placing an insurance policy. If C.P.I. was added to your account, you can provide proof that there was never a lapse in your insurance coverage AutoMax will refund you up to four months of CPI premiums.
AutoMax will remove C.P.I. when the customer provides proof that the required property insurance is in force.
Still have questions? Call us …
We are here to help. Our team members in the insurance department have years of experience dealing with complicated issues. We can help you navigate any complicated insurance issues.
If you are a Youngsville customer, please call Heather at (919) 570-1107.
If you are a Henderson customer, please call Matt at (252) 430-1006.