Collateral Protection Insurance Buy Here Pay Here [PREMIUM · 2027]

Look for providers like Buckeye Risk Services or DealerRE that specialize in BHPH-specific risk management. ✅ Summary for Borrowers

CPI is a specialized insurance policy a lender (the dealership) purchases to protect their interest in a vehicle. According to Bankrate , it is triggered when a borrower fails to maintain the comprehensive and collision coverage required by their loan agreement. Why Dealers Use It collateral protection insurance buy here pay here

If a customer eventually provides proof of their own insurance, the dealer must usually remove the CPI and may owe a prorated refund for the period of dual coverage. Look for providers like Buckeye Risk Services or

It covers physical damage, theft, or total loss, ensuring the dealer doesn't lose the collateral's value if the driver is uninsured. Why Dealers Use It If a customer eventually

The dealer pays the premium upfront and then adds that cost—often split into monthly installments—directly to the borrower's loan payment.

It is important to note that CPI typically does not include liability insurance. It only protects the car, not the driver's legal responsibility for injuries or damage to others. 🔑 Tips for a Smooth CPI Program

It saves dealerships thousands of dollars in "uninsured loan" losses. How the Costs Work