Ensure the loan contract explicitly states that CPI will be added if proof of insurance isn't maintained.
The dealer pays the premium upfront and then adds that cost—often split into monthly installments—directly to the borrower's loan payment.
If a customer eventually provides proof of their own insurance, the dealer must usually remove the CPI and may owe a prorated refund for the period of dual coverage.
It covers physical damage, theft, or total loss, ensuring the dealer doesn't lose the collateral's value if the driver is uninsured.
The easiest way to avoid the high costs of CPI is to keep your personal car insurance up to date and always provide your lender with updated policy info.
Look for providers like Buckeye Risk Services or DealerRE that specialize in BHPH-specific risk management. ✅ Summary for Borrowers