Collateral Protection Insurance

Confirming your insurance information is the bow that keeps your auto loan experience together. Reach out and supply us with your policy details to avoid having CPI added to your loan.

What is Collateral Protection Insurance?

CPI is car insurance purchased by the lender – in this case GECU – when a borrower doesn’t have satisfactory coverage on their vehicle. Your loan agreement requires you to maintain comprehensive and collision coverage on your vehicle for the life of your loan. We require you to provide us evidence of acceptable insurance coverage as outlined in the loan agreement.

What do we need from you?

At loan closing, you’re asked to sign an Agreement to Provide Insurance stating you will send the Credit Union proof of the collateral being fully insured throughout the lifetime of the loan. This includes:

• Sending in the current policy when the vehicle is added to your insurance
• Any subsequent renewal policies 
• Updated information should you change insurance companies

For sufficient proof of insurance, the policy must include: 

• The dates of coverage
• The VIN and description of the vehicle being covered
• Collision and Comprehensive deductibles no greater than $1,000 each
• GECU listed as the lien holder

NOTE: An insurance ID card is not sufficient as it does not contain all the above information. 

What happens if proof of insurance is not provided? 

If sufficient proof of insurance is not provided to the Credit Union, we may purchase a CPI policy on your behalf to cover the collateral, and your monthly loan payment will be adjusted accordingly. This does not cover any person involved in an accident with the collateral nor does it count as state minimum coverage. Due to this, we strongly advise you keep us up to date with your insurance coverage. 

NOTE: We will send you a letter notifying you that we need your insurance policy information prior to adding CPI to your loan. If CPI has already been added, members can get the CPI refunded once they provide the needed insurance information. Refunds take approximately 2 weeks.