CPI: Collateral Protection Insurance
Your vehicle contract with PAACO requires property insurance (comprehensive and collision coverage) against damage or loss until your contract is paid off. You can get insurance from anyone you want or provide proof of insurance you already have.
Our Master CPI policy program is an alternative to traditional insurance.
What is CPI?
CPI is a physical damage insurance program that provides you, our customer, with the property insurance coverage that your contract with PAACO requires. PAACO has a Master CPI Policy Agreement that you may elect to join when you finance a vehicle with us.
If your own auto insurance lapses or is cancelled, PAACO will apply for a CPI policy on your financed vehicle until your insurance is reinstated or renewed.
CPI is not liability insurance: you must get your own liability insurance for state purposes.
What are the benefits of CPI?
- A fixed rate of $109 a month and a low deductible of $231 per claim
- A policy that covers named drivers in the household (age 18 and older).
- Rates are not based on driving records, age or credit
What else does CPI offer?
The $109 CPI monthly premium breaks down to match your contract’s payment schedule (e.g. weekly payments of $25.00, or semi-monthly payments of $54.50).
If you’re late on your CPI payment, your insurance is not necessarily cancelled.
There are no large policy fees, no renewal fees, and no late fees.
You can drop CPI coverage at any time during your contract with PAACO when you provide us with insurance that meets our requirements: all drivers on the contract are listed, there are $500 deductibles or lower, and BTS Motors LLC dba PAACO is listed as the lienholder.
What does CPI cover?
CPI is a Single Interest Insurance Policy that covers the financed vehicle against comprehensive and collision loss. CPI does not protect the retail purchaser’s equity in the vehicle, and it provides limited coverage to the retail purchaser. CPI does NOT cover after-market items (wheels, stereo system, special paint, etc.).
Does CPI take the place of liability insurance?
No. You need to get a separate liability policy from an outside insurance carrier.
CPI does not cover you, your passengers, or personal / business items in your vehicle. CPI also does not cover any other automobile, property, or people in the event of an accident.
Liability insurance is required by the state of Texas; you need liability insurance for a traffic stop, to register your vehicle, or when you’re involved in an accident.
CPI is not liability insurance. You should get your own liability insurance for state purposes.
CPI Insurance Claims Process
How do I file a CPI claim?
Contact the PAACO Sales location where you financed your vehicle or call our Insurance Department at 817-635-2448. Alternatively, you could call the Collections Department at 866-278-7106 and ask for our Insurance Department.
You will need to fill out three forms. We need color pictures of the damaged vehicle and an estimate for repairs (if the vehicle is drivable). The PAACO Sales Manager can recommend a repair or body shop to you. If the vehicle isn’t drivable and has been towed, we need to know where the vehicle is located so we can arrange for a CPI adjuster to inspect the vehicle.
As with all insurance companies, claims take time; most claims are settled within two weeks of being reported. The quicker you can get us the paperwork, the quicker the process will move along.
Claims will be paid on the lessor of the following:
- Cost to repair vehicle.
- Actual cash value (ACV) of the vehicle at the time of loss.
- Net payoff of the retail installment contract at the time of loss.
- Maximum limit of liability as indicated on the policy. (ACV is determined by adding together NADA Trade-in and NADA Retail, divided by 2, to obtain an average plus additions or deductions for options and mileage).
While my CPI claim is pending, how do I get to work or school?
CPI does not offer loaner cars or rental car reimbursement. You are responsible for your own transportation. You are also responsible for making payments on your vehicle and CPI ledgers while your CPI claim is processed or your vehicle is being repaired.
Your Insurance Department said my vehicle is totaled, but I know someone who can fix it. Can I keep it?
No. Once a vehicle has been deemed a total loss, it is no longer safe to drive. In the event of a total loss, the Sales Manager will work with a customer in good standing to help get you into another vehicle. You are a very important member of the PAACO family, and we want you to be safe in your vehicle.