Collateral Protection Insurance
Collateral Protection Insurance - APG Financial
The cost of Collateral Protection Insurance(CPI) varies based on the payment structure and vehicle value.
CPI meets all insurance requirements set by APG Financial. If an accident occurs, damages to the leased vehicle are covered after you pay a $500 deductible. If the vehicle is a total loss, CPI will cover the remaining lease balance after the deductible is paid and a replacement vehicle is purchased through Markosian Auto. Until then, the remaining loan balance is your responsibility.
Please note that CPI does not cover any medical expenses or damages to property beyond the leased vehicle.
Benefits of having CPI:
- All customers qualify
- Saves you $$$
- It’s convenient
- No start up charges
- Peace of mind
How Collateral Protection Insurance Works
If you notify APG Financial of a vehicle loss and we determine your vehicle is a total loss, the lease will end and you will pay a deductible of $500 and any amounts already due under the lease before the date of the loss.
If you notify us and your vehicle is not a total loss, we will make commercially reasonable efforts to repair any damage resulting from the vehicle loss within a reasonable time. You will pay a deductible of $500.
You will need to continue to pay all amounts due under your lease even while you are waiting for us to make any repairs and agree to pay 100% of the price of any repairs you make yourself of have a third party make.
When the CPI will apply:
As long as you pay the monthly charge by the due date of the scheduled monthly payment(s). The CPI will be voided if the vehicle is used in a way that violates the terms of the lease or if the vehicle loss results from your intentional acts or omissions
Cancellation of the CPI:
You may cancel the CPI at any time. The CPI may also be cancelled if we decide, for any reason, to stop offering it to you. If the CPI is cancelled, you must immediately comply with the physical damage insurance requirements set forth in the lease.