Auto Insurance requirements are determined by the state that you reside in, regardless of whether you own your car or have it financed through a buy here pay here dealership or other third party. In the state of North Carolina, where AutoMax is located in the Research Triangle area, drivers must carry two types of auto insurance on a car they’re still paying off. Drivers must carry liability insurance and comprehensive (collision) coverage.
While most traditionally-financed vehicles are required to carry full coverage auto insurance, AutoMax offers special buy here pay here car insurance through one of our trusted partners. This insurance meets the state minimum, but can save you a bundle of money on premiums. It’s called Collateral Protection Insurance, or CPI, and you can purchase it through us when you sign the paperwork on your new-to-you buy here pay here car. Let’s review the types of auto insurance available to you, so you can make an informed decision on how to proceed in insuring your investment.
The first type of coverage that drivers of pay here buy here cars are required to carry is called basic auto liability insurance. Basic auto liability insurance does not cover the cost of any damage to your own vehicle or your own bodily injury in the case of an auto accident. However, it does cover any damage you may do to another vehicle or a static object.
If you want to repair your vehicle after an accident, basic liability insurance won’t be enough for you. You’ll need to come up with the cash to pay for the repairs to your car or for your own medical bills yourself.
Basic auto liability insurance does cover the damage done to any other person or vehicle involved in the accident. So, in the case of an accident with another vehicle, the other vehicle and driver are protected by your insurance. In the case of basic auto liability coverage, it is required to carry at least this level so that other drivers on the road are protected in the case of an emergency. This is also why it is required in the Raleigh, North Carolina area to carry basic liability insurance on a pay here buy here car.
North Carolina law requires a minimum liability coverage of:
Collision or comprehensive insurance is important to purchase if you are still paying off your vehicle, including those financed through buy here pay here car lots. This coverage protects your vehicle in case of a collision. The time you accidentally back into a pole? Covered. Did your garage jump out in front of you again? Covered. Side-swiped the gas pump? Covered. Mistakes happen, but having collision insurance will help cover you - just in case. Comprehensive or collision insurance gives you peace of mind that you and your vehicle will be taken care of in the case of an accident.
Comprehensive coverage also covers costs in the case of theft, hail, animal damage, vandalism, falling objects, and more. Comprehensive and collision are usually purchased in combination. Both are required when purchasing a buy here pay here vehicle, until it is fully paid off. The downside is that this insurance premium can be costly, especially if your driving record isn’t squeaky-clean. Auto Max offers you an alternative that can save you some serious dough: CPI insurance.
With a pay here buy here dealership purchase, you can choose from either collision and comprehensive coverage from your third-party insurer, or you can purchase CPI to accompany your basic liability insurance, which you’ll also need to get from an insurance company.
CPI is a type of insurance coverage offered in-house by AutoMax through one of our valued business partners. Just as a buy here pay here car lot doesn’t consider your credit history, CPI insurance doesn’t consider your driving record before granting you coverage. Instead, you can get a flat rate of just $89 per month.
So, despite your accident-prone driving record, your auto insurance costs won’t be higher. With traditional insurance options, good drivers are rewarded with lower monthly insurance payments, and those with some past indiscretions are punished repeatedly every time a premium payment is due. Another positive of purchasing CPI through AutoMax is that you can just pay your monthly premium with your monthly car payment - no need to send in a separate payment.
CPI coverage is equivalent to purchasing both collision and comprehensive coverage, meaning it covers what happens to your vehicle by your driving mistake or rogue natural causes. CPI comes standard with a $500 deductible, something that can vary with traditional insurance depending on what policy level you choose. This means that if damage to your vehicle does occur (whether collision or comprehensive), you’ll be responsible for the first $500 it takes to fix the damage, but the CPI coverage will cover costs beyond that.
If you have questions about our in-house collateral protection insurance, one of our expert sales team members will be able to walk you through the coverage. If you are a Youngsville, North Carolina customer, please call Heather at (919) 570-1107. If you are a Henderson, North Carolina customer, please call Matt at (252) 430-1006.
As with any type of financed vehicles, our pay here buy here car lot does require insurance coverage to keep your driving legal and your car on the road. Both the liability coverage and the collision and comprehensive are required, or the liability and the CPI. The good thing is that you have options, and the insurance coverage Auto Max can provide you tends to be more affordable than purchasing full-coverage protection required by traditional financing options.
Contact our team of experts today to discuss your buy here pay here used car insurance options.