Collateral Protection Insurance

What is collateral protection insurance (CPI)?

Collateral Protection Insurance—also known as CPI, force-placed insurance, or lender-placed insurance—is a type of insurance that may be added to your vehicle loan if you do not keep valid full coverage insurance as required by your retail installment contract. When you finance a vehicle through us, your contract requires you to maintain comprehensive and collision coverage with Ray’s Motor Sales listed as the lienholder. This protects both you and the dealership in case the vehicle is damaged or totaled.

If we are unable to verify that you have your own insurance, find the vehicle has inadequate coverages, or does not meet our coverage criteria, we will add a CPI policy to your account. This policy only protects the vehicle and our interest in it—it does not provide liability coverage or meet state minimum insurance requirements. 

Because this policy is added to your loan balance, it will increase your payment amount. If you’ve been directed to this page, we’ve either received notice from your insurance company that you do not have appropriate coverages, or we have not been able to verify coverage at all.

If CPI is added and you later provide proof of valid coverage, we may be able to remove the charge going forward.

insurance coverage requirements

Below are the requirements for a valid insurance policy per our Retail Installment Contract. These items must be in place in order for our Collateral Protection Insurance to be removed. If you have been placed on CPI and want to have it removed, you must provide a declarations page with the following criteria. You may also stay on our CPI as long as the loan is active if that is your preference. 

any driver covered

The vehicle must be covered by anyone who drives it at any given time. We do not accept policies with excluded drivers, or named drivers only (meaning only certain drivers covered).

$500 max Deductible

Per the Retail Installment Contract you signed when you purchased the vehicle, a maximum deductible of $500 is required for comprehensive and collision coverage.

Lienholder Listed

Ray's Motor Sales must be listed as lienholder on the policy. Your carrier should ask for our address. Our address is 201 S 1st Street, Lake Wales, FL 33853.

Current CPI Rates

To satisfy the requirements of the Retail Installment Contract, we have added CPI to your account. Here’s how it would breakdown for you depending on your payment schedule:

  • Monthly: $130/month
  • Bi-weekly: $60/bi-weekly
  • Semi-Monthly: $65/semi-monthly
 
**Important: This coverage covers only the comprehensive and collision portion of your insurance. It does not satisfy state minimum liability requirements. Maintaining state minimum or higher liability coverages is your responsibility to obtain or keep through a third-party insurance company.

Commonly asked CPI questions...

CPI was added to your account for one (or more) of the following reasons:

  1. We were notified by your insurer that your insurance cancelled or expired.
  2. We were notified you no longer had comprehensive and collision coverage, which is required by the Retail Installment Contract.
  3. Your comprehensive and/or collision deductibles were higher than $500.
  4. We discovered the policy had an excluded driver and/or was a “named driver only” policy.
  5. Ray’s Motor Sales was not listed as lienholder.
  6. We were unable to verify your insurance policy at all.

NO. CPI only covers physical damages to the vehicle and protects the lienholders interests only. It does not satisfy state minimum liability requirements. You are still responsbile to maintain state minimum coverages on your own and separate from CPI.

Yes! Our CPI program completely satisfies physical damage coverage requirements in the Retail Installment Contract.

Yes, you may stay on CPI as long as your loan is active with us. Again, we want to reiterate that this coverage does not satisfy state minimum liability requirements. You are responsibile to keep that in good standing through a third party insurer.

You can have our CPI removed by providing a fully compliant policy from a third party insurer. The requirements are:

  • Comprehensive and Collision coverage.
  • Ray’s Motor Sales, Inc. listed as loss payee or lienholder 
  • $500 maximum deductible for comprehensive and collision coverage.
  • Customer must be a named insured on the policy, not just a driver.
  • No excluded drivers.

It is your responsibility to provide this policy to us. Once we verify coverages, we will remove CPI from your account and you will see the charges removed.

If you have further questions regarding CPI and why it was added to your account, please contact us at 863-676-6321

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