Collateral Protection Insurance (CPI)

Collateral Protection Insurance (CPI) insures vehicular property that is held as collateral for loans made by lending institutions. Our lenders purchase CPI in order to manage their risk of loss, transferring that risk to ARS as the providing agency…

The Need

American Risk Services' CPI Program addresses the fact that up to 75% of non-prime auto customers do not have insurance coverage upon entering a dealership. Because the Lender requires customers to provide insurance that protects the interest in the financed vehicle, customers will often purchase a binder (short-term coverage) in order to close the loan. However, in these cases, coverage will cancel a short time after purchase due to non-payment. Thusly, the lender is left with uninsured loans with the potential for physical damage losses and charge-offs.

The Solution – CPI

ARS' convenient CPI Program provides Lender protection, dramatically reducing these damage-related losses and charge-offs, as well as repossessions (as vehicle repair is covered, allowing customers to continue making their loan payments as opposed to the alternative, in which these customers become overwhelmed by bills for such damages that ultimately result in repossessions).

The Dealer / Lender utilizes an intuitive web-based system to enroll customers in-person at the dealership, eliminating insurance verification delays that would otherwise be present. (The protection of collateral at the time of the loan is immediate.) When a contract is created, the term of insurance is tailored to fit the Lender's needs.

The Benefits

  • Profit of the loan is increased
  • Need for insurance tracking is dramatically reduced
  • More down-payment made because of lowered out-of-pocket expenses for customers
  • A convenient payment process is established for customers, creating a system of greater potential collection for the Lender / Dealer

In addition, liability insurance has also been made available.

Contact

Scott Satterthwaite – Business Development Executive
ssatterthwaite@americanriskservices.com
513.325.8719

Kirk Saunders – Director of Sales (CPI Specialist)
ksaunders@americanriskservices.com
678.366.7279