Collateral Protection Insurance

Collateral-Placed Insurance (CPI), also known as Collateral Protection Insurance or Force-Placed via MyInsuranceInfo, is an insurance coverage used by lenders as a last resort to protect collateral obtained with a loan. The CPI does not provide comprehensive coverage since it only protects what you purchased. The policy does not provide liability coverage, and it does not protect you or others in the event of injury.


CPI is also much more expensive than traditional insurance. Since it covers all of the remaining loan amounts, unlike traditional insurance, which covers the collateral’s actual cash value, you’re actually protecting your collateral’s true value.

An Overview Of Collateral Protective Insurance

There are a few reasons why you might have to pay for CPI coverage. Let’s explore why someone might develop CPI, what it means if you do, and how you can get rid of it.

Someone’s loan is subject to CPI if they do not have the required insurance coverage and have not corrected the discrepancy.

Your financial institution works with MyInsuranceInfo to make sure you’re adequately covered. To correct any problems with insurance coverage, your financial institution sends multiple notices, either through the mail or via email. If you fail to verify your insurance coverage, CPI is applied to make sure your loan is covered in the event of an accident.


In addition to the cost increase associated with CPI, this coverage comes with additional risks. If an accident occurs that results in damage or injury, you may still be personally responsible for paying the cost of the damage or any medical expenses associated with the accident.

CPI insures your collateral but not you, so you are at greater risk. Therefore, it is best to get rid of CPI as soon as possible. It is easy to get rid of CPI. You must ensure you have sufficient coverage as outlined in your loan agreement to remove CPI.

You can submit your insurance information to MyInsuranceInfo’s secure portal after you’ve verified you’re sufficiently covered. Your job is done once they have proof of insurance and your financial institution is listed as the lienholder on your policy.