What is a CPI charge on my auto loan?
"I was looking at my auto loan statement, and I see something that says ""CPI Charge,"" which costs $2,500.
What is this charge?"
Answer provided by
Answered on May 26, 2021
“Collateral protection insurance, also known as force-placed insurance, is something the lender can add to your loan if your current car insurance coverage lapses. So if you forgot to renew or didn’t pay, you might see this charge.
Unfortunately, there’s not much you can do about this. CPI is written into your contract. However, if you believe this charge is a mistake, and you do have auto insurance, contact your lender immediately to show proof of insurance and get this charge dropped.
In addition, you might be able to get this policy canceled if you provide proof of insurance. This won’t always work, and you might be out of luck, but it’s worth a shot.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
How can I insure my vehicles as a car collector?
I want to start collecting cars and I'm not sure how insurance works for that. Are there special policies? Can I insure all of my vehicles on one policy, or do I need separate policies for each one?
Apr 21, 2021
Can a cosigner of a car loan register the car under their name?
I recently bought a vehicle with my uncle as a cosigner. I'm having trouble finding time to get to the DMV around my work schedule. Can my cosigner register the car in his name?
Apr 27, 2021
"What is the best way to finance a classic Camaro? "
"The Camaro I want is selling for $5,000. I have $2,000 in cash and would need to borrow $3,000 more. My bank won't give me a car loan, which I don't understand since I don’t have bad credit. How do people buy older cars? "
Apr 26, 2021