Collateral Protection Insurance is designed to protect the interest of the lender and borrower in collateral securing a consumer loan.
Collateral Protection Insurance provides “All Risk” coverage against physical damage losses, plus theft protection.
Collateral Protection Insurance premiums are paid by the borrower and typically added to the loan balance. Premiums are paid annually.
Collateral Protection Insurance can be a lender-administered program, or offered in conjunction with an automated tracking system – usually at no cost to the lender.
|¨ RECREATIONAL VEHICLES
¨ TRAVEL TRAILERS
¨ LIGHT EQUIPMENT
¨ Premium Protection – protects the lender against uncollectible premium.
¨ Waiver of ACV – total loss and theft claims are paid based upon the loan balance, not Actual Cash Value of the vehicle.
¨ Repossession Expense – reimburses for Mechanics Liens, Repossession and Storage expenses incurred by the lender.