Does collateral protection insurance cover a stolen vehicle?
"Will CPI cover me if my car was stolen? I have liability insurance and CPI through my bank. Would it pay off my remaining loan balance?"
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Answered on Jul 28, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
“The purpose of collateral protection insurance (CPI) is to provide protection on a vehicle if your car insurance isn’t sufficient.
To cover theft, your policy would need comprehensive insurance. Since you only have liability car insurance on your vehicle, you’d need CPI if it was stolen.
In most cases, your insurance will pay for the actual cash value of the stolen vehicle. If CPI pays for the value of your vehicle but it’s worth less than your loan balance; you’d owe the remainder.
You would need gap insurance to cover the difference between what you owe on your loan and your vehicle value.
If you’re looking for more coverage, you should shop around. You may be able to find more coverage with another carrier at a lower cost than CPI.”
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