This article explains what Collateral Protection Insurance is and what to do if it has been added to your auto loan.
What is CPI?
Collateral protection insurance (CPI) — also known as force-placed insurance — is a type of auto insurance purchased by Floridacentral to protect the vehicle.
As the borrower, you agree to provide the required insurance for the entire term of the loan contract. If you do not to submit proof of the required insurance, Floridacentral may purchase CPI to protect its interest in the vehicle from damage or loss and add the premium to your loan balance.
CPI is purchased to protect the credit union's interest in the vehicle. CPI does not offer the same coverages that protect you from financial losses that you would get with an auto insurance policy. It can also be more expensive that an auto insurance policy. Therefore, it is in your best interest to purchase and maintain adequate insurance coverage throughout the life of your loan.
Why did my auto loan payment increase?
There are three reasons CPI could be added to your auto loan.
- Floridacentral did not receive your insurance information.
- The policy information you provided was not acceptable.
- Floridacentral received notification from your insurance company that your policy was cancelled.
In these cases, Floridacentral may purchase CPI on your behalf and add the cost of this insurance to your loan. As a result, your loan payments will increase.
How do I provide proof of insurance?
If you have insurance, please contact our insurance tracking team at (877) 587-5749 to update your information.
There are a number of easy ways to provide the needed information:
Complete the insurance information form at www.myloaninsurance.com, and we will verify the insurance and update our records.
Contact your insurance agent or insurance company and have them mail a copy of the necessary information to the address below. The address can also be found at the bottom of the letter you received.
Floridacentral Credit Union
P.O. Box 924496
Fort Worth, TX 76124
Contact your insurance agent or insurance company and ask them to fax the required information to (877) 634-9099. This fax number can also be found on the letter you received.