How is the CPI premium calculated?
• Why is the premium so high? The premium is based on a rate that is filed with the insurance department in the state where your lender is located. It is a percentage of your current loan balance. The premium for CPI coverage is typically high because no underwriting is done when the coverage is issued, in other words a borrower’s driving record or the type of car is not considered. What should I do if my vehicle has been repossessed and or I am in bankruptcy. • Contact your loan officer.
