Collateral Protection Insurance

The coverages afforded by CPI are primarily to protect the credit union's interest. CPI will not satisfy the requirement of any financial responsibility law, nor does it provide liability coverage.

Insurance

Collateral Protection Insurance (CPI)

 

What is CPI?

CPI may be issued through the credit union's insurance program. The coverages afforded by CPI are primarily to protect the credit union's interest. This is a dual interest policy.

  • What’s covered - It allows the member and/or Security Service to file a claim on damage or total loss of the vehicle. It is important to note that the policy provides physical damage coverage (comprehensive and collision) and is intended to protect the loan.
  • What’s not covered - There is no coverage for bodily injury or property damage liability, nor does this coverage comply with the financial responsibility laws or no-fault laws of each State. CPI will not provide medical insurance, uninsured motorist, or underinsured motorist coverage.

 

Why CPI?

Your Loan Agreement requires that you maintain insurance covering physical damage to protect the credit union's interest in your collateral. Your signed Loan Agreement allows Security Service to purchase Collateral Protection Insurance (CPI) and add the premium to your loan balance if you do not obtain or maintain insurance coverage.

 

How to Provide Insurance Information

If you receive correspondence from Security Service stating that we do not have your insurance information on file, we offer several ways for you to provide your insurance information:

 

Your Insurance Information Needs to Include the Following

  • A loss payable clause naming Security Service FCU as loss payee/lienholder.
  • A full collateral description including the Vehicle Identification Number (VIN).
  • Comprehensive and collision coverage with a maximum $1000 deductible.
  • The effective and expiration dates of the policy period.
Please note, insurance ID cards are not acceptable as proof of insurance.