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Click here for an instant quote: Auto Insurance Quote or call us now @ 806 763 2886
The first thing to know, CPI covers the lender, not the consumer. You are the consumer, it does not cover you. That's important.
That’s right, you, as the vehicle owner, are not covered. The bank or car dealer is covered. Here’s how it works.
Let’s say you purchase a $35,000 vehicle with a $5,000 down payment and you purchase CPI. Your estimated auto loan payment would be $600 per month for a 5 year loan.
After paying on the vehicle for 30 months you are involved in an accident and the vehicle is totaled. With CPI, the balance of the loan is paid off but you as the owner receive NOTHING!!!!
30 months X $600 = $18,000. You have paid $18,000 plus $5,000 down on your vehicle and you get nothing.
With insurance you purchase from an insurance company, the company would pay you the actual cash value of the vehicle. If the value of your vehicle was $23,000 at the time of the accident and the balance of your loan was $16,000 the insurance company would pay you the difference in the actual cash value and the loan balance or $7,000. That’s enough for a down payment on another vehicle.
With CPI you get NOTHING, NADA, ZIP. Plus, CPI does not include liability or uninsured motorist and it only covers your one vehicle.
If you have a traditional auto insurance policy, all your vehicles can be insured with the different coverage's you need. You may only want liability and uninsured motorist on your older vehicle but need full coverage on your newer vehicle. With a traditional auto policy that is possible.
CPI only covers 1 vehicle and it only covers the lenders interest, NOT YOUR INTEREST!!
Know before you buy. Or better yet call All Write Insurance for a quote and let us show you how traditional auto insurance works compared to CPI.
Or click here for an instant quote: Auto Insurance Quote or call us now @ 806 763 2886
Posted Monday, September 16 2019 3:44 PM
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