Collateral Protection Insurance is creditor placed Physical Damage Coverage that covers the Creditor’s interest in your vehicle. It fulfills the Creditor’s Insurance requirement on the credit agreement.
CPI is placed by the Creditor to protect their interest in the vehicle against physical damage should you fail to obtain or maintain physical damage insurance as required in the credit agreement. You will be responsible for the cost of this insurance.
You may purchase your own physical damage insurance from an agent or company of your choice at any time. If you provide acceptable physical damage insurance anytime, the CPI coverage will be cancelled and you will be credited any unused premium.
You may indirectly benefit from the CPI coverage. Claim payments made to the Creditor, will either be credited to your credit agreement or used at the Creditor’s discretion to repair your vehicle.
Should there be physical damage claim to the vehicle while CPI is in place, you will be responsible to pay the deductible on any claims paid to the Creditor. Your credit agreement requires you to obtain and maintain acceptable physical damage insurance during the term of the credit agreement.
You may purchase physical damage insurance from any agent or company licensed to do business in your state. If you fail to provide proof of adequate physical damage insurance, or have failed to maintain or obtain physical damage insurance, the Creditor can purchase CPI insurance, at your expense to protect their interested in your collateral.
COLLATERAL PROTECTION INSURANCE DOES NOT PROVIDE BODILY INJURY, NO FAULT OR LIABILITY INSURANCE AND DOES NOT COMPLY WITH ANY STATE FINANCIAL RESPONSIBILITY LAW. YOU MUST OBTAIN AND MAINTAIN THE STATE REQUIRED LIABILITY COVERAGE ON YOUR OWN. IT IS YOUR RESPONSIBILITY UNDER STATE LAW TO OBTAIN LIABILITY INSURANCE. THIS COVERAGE IS NOT AND DOES NOT PROVIDE LIABILITY COVERAGE.
Your loan balance is wiped out too! Debt Cancellation Coverage (DCC) cancels your debt if your car is totaled or stolen (minus a small deductible). Restrictions may apply.
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Is this Insurance?
No, it is an agreement between you and the finance company.
How will I pay for it?
Debt cancellation will be billed with your vehicle payments.
Is there a deductible?
Yes, $500 similar to insurance.
Do I need liability insurance?
Yes, You are required by the law to have Liability Insurance on your vehicles.
Does Debt Cancellation include liability insurance?
No you must obtain Liability Insurance from an insurance company.
Will it fix repairs on my car?
No, Comprehensive and Collision Insurance will cover repairs, but it generally costs more than debt cancellation. Debt Cancellation cancels your debt on a total loss.
Can I cancel debt cancellation?
Yes. If you purchase Comprehensive and Collision Insurance that meets the finance company’s terms as stated in the credit agreement.
Can I have Comprehensive and Collision Insurance and Debt Cancellation?
Yes.
Do I Qualify?
Not all customers qualify for Debt Cancellation Coverage. Restrictions do apply. Ask your representative about qualifying for this benefit.
Water Pump Replacement – $455
Timing Chain – $1,250
Engine Overhaul – $3,545
CVT Transmission Overhaul – $3,950
Motor Mounts – $490
Constant Velocity Joint – $305
READ THE VOLUNTARY DEBT CANCELLATION AGREEMENT FOR ALL OF THE TERMS AND CONDITIONS. YOU ARE REQUIRED BY YOUR STATE TO OBTAIN AND MAINTAIN LIABILITY INSURANCE ON YOUR VEHICLE.
When you purchase a pre-owned vehicle, you will likely budget for all the associated expenses, such as, car payments, insurance, and taxes but most used vehicles also require a few mechanical repairs down the road. With the high costs, even a minor repair could impact your budget.
A vehicle service contract gives you confidence in your vehicle as recommended by the manufacturer. If you need a repair, service can be obtained in accordance with your selected coverage.
Coverage for parts and labor costs.
The vehicle service contract can be transferred when the vehicle is sold to another individual owner.
Pay only a small deductible for each covered repair.
When traveling outside your coverage area, service can be obtained at the facility of your choice in the United States and Canada.
