Does buy here pay here require full coverage insurance

Buy Here Pay Here (BHPH)

Don't gamble with your collateral!

Is this your loss or our loss?

Collateral Protection Insurance

• Fixed monthly rate

• Low comprehensive and collision deductibles

• Not a named driver policy

• Rate not based on driver’s driving record, driver’s age, or credit rating

• Insurance payments correspond with auto payments

• Protects lienholder's interest in event of accident

• Not canceled if payment is late

• No renewal policy fees

• No payment collection fees

• Claim settlement issued to lienholder (dealer)

ADVANTAGES TO THE BHPH DEALER/LIENHOLDER:

1. BHPH dealer is the insured, not the borrower.

2. All claim payments are made to the dealer, not the borrower, resulting in the dealer knowing the vehicle is repaired.

3. Dealer collects insurance payment along with vehicle payment.

4. Claims are normally paid within 10 business days of reporting.

5. If dealer has repair facility, repairs can be made generally at a lower cost and to dealer satisfaction.

6. Helps the dealer insure that the vehicle being financed is insured through finance agreement.

7. Borrower cannot cancel certificate of coverage leaving dealer uninsured.

8. All vehicles financed can be insured under the collateral protection insurance program, no chance of vehicle being denied coverage.

Insurance tracking:

CP Insurance Associates has been tracking insurance for various type lenders since 1977. Our insurance tracking system, known as ALISX, is a web based system using state of the art technology. The system is designed to continuously monitor the insurance status of each of a BHPH dealer's customer to insure the dealer is always protected by insurance against physical damage loss.

CP Insurance Associates through the use of ALISX, provides the BHPH dealer with the following:

1. Updating of all insurance documents received by the dealer or from the insurance information provided by the insurance companies directly via EDI (Electronic Data Interface). Insurance information is updated by CPIA on a daily basis into ALISX.

2. When it is determined a customer insurance has lapsed or has been cancelled, the system will notify the customer by mail, text and/or email of the lapse and insurance must be maintained throughout the term of the Retail Installment contract.

3. If the customer fails to provide acceptable insurance to protect after notification, ALISX will automatically issue insurance to protect the dealer's financial interest in the vehicle. The dealer has the option to opt out of lender placement should he choose to do so.

4. Our tracking service provides the dealer's customer and the dealer's staff a toll free number for inquires as to the status of each customer's current insurance status.

5. In addition, the dealer may access the insurance status of any customer by connecting through the web to ALISX to view their loan portfolio. This is a secure site so only each respective dealer may access their loans and their status.

6. The system produces many reports the dealer may use to remain on top of the insurance status of each customer.

7. ALISX may be used to file CPI claims, to access the status of a claim.

ADVANTAGES OF BHPH BORROWER:

1. Monthly premium is generally less than through traditional insurance market.

2. There is no underwriting of the borrower as to age, vehicle type, or driving record resulting in coverage being issued at a lower cost to borrower with no chance of being denied coverage.

3. BHPH borrower pays insurance premium to dealer along with vehicle payment.

4. Allows BHPH borrower to fulfill dealer insurance requirement easier and at a lower cost.

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