Collateral Protection Insurance (CPI)
If you are a BHPH dealer, you understand that keeping your customer’s vehicle insured is a constant struggle. It starts at the time of sale, with expensive premium quotes and high down payment requirements. After that, the cycle starts: Dropped insurance…pursue customer to reinstate coverage… coverage acquired…dropped insurance, again and again. That’s where collateral protection insurance (CPI) can solve these issues and get your customer reliable insurance coverage while increasing your profitability.
CPI is a commercial insurance product between a lender and collateral protection insurance company. Lenders buy to protect their assets in the event of a physical damage loss to what would otherwise be an uninsured vehicle. When a customer fails to provide adequate physical insurance on the car, the lender has the right to place the asset on CPI. The cost of CPI can be passed onto and collected from your customers.
- No upfront costs
- Lender earns the underwriting profit through reinsurance
- Quick and painless claims process
- CPI premium is collected at the same frequency as the auto loan payment
why Buckeye Dealership Consulting
Since 2008, we’ve helped dealerships like yours become more cost-effective and profitable with customizable F&I solutions. Buckeye can customize your rates and terms, promotional material and net remittance of claims and cancellations, giving you 100 percent control of your investments.
Our team ensures you receive fast and accurate financial statements on a quarterly or monthly basis, keeping you well informed on the health and status of your program. Unlike our competitors, Buckeye’s in-house accounting team is always available to answer your questions and offer consulting services at your convenience. We’re here to help you support your customers and grow business exponentially.
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This article was written by Randy Henrick and...
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