Know More About the Insurance Required on Your RBFCU Auto Loan

As a car owner, it’s very important to carry insurance that will cover damages, theft or loss of use. Insurance is required in Texas and most states. RBFCU auto loan agreements require that proof of current comprehensive insurance coverage is in place to protect the collateral of your loan. This requirement is effective at all times during the term of the loan, whether the car is initially purchased or if the insurance expires and a renewal or new policy is obtained.

We record proof of your coverage with an insurance declaration page. Members who do not have a current declaration page on file are notified and are provided a timeframe to receive the documentation. If the current declaration page is not provided to us, Collateral Protection Insurance (CPI) will be issued through our insurance program. The CPI policy will not satisfy the requirements of any financial responsibility law, nor does it provide liability coverage. The cost of this policy may be higher than the cost of insurance that you could purchase through your own agent.

Please review these FAQs for more details:

  • What is the Collateral Protection Insurance (CPI) program?
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    The Collateral Protection Insurance (CPI) tracking program allows RBFCU to monitor insurance coverage on collateralized loans. When we determine that the collateral does not carry adequate insurance coverage, the program works with the member to establish proper coverage through their insurance carrier. If the member fails to provide RBFCU with proof of coverage, RBFCU force places a CPI policy covering the collateral against physical damage and theft.

  • How does RBFCU know if a member has an active insurance policy?
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    RBFCU, partnering with SWBC, leverages various technological search tools to monitor insurance coverage among all the top insurance carriers in the country. We determine insurance by the collateral, not the member, meaning the member must list the collateral on an active comprehensive insurance policy.

  • What coverage does the Collateral Protection Insurance (CPI) policy provide?
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    The CPI policy provides member and lender collateral coverage against physical damage and theft with an insurance deductible of $500.

  • When requested, how can members provide proof of insurance coverage for their existing auto loan?
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    Members can provide a copy of the insurance policy declaration page using the following channels:

  • What does RBFCU consider as adequate insurance coverage according to the auto loan agreement?
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    RBFCU requires members to maintain a comprehensive insurance policy, subject to a maximum deductible of $1,000, which includes coverage that protects against damage to the vehicle caused by non-collision events outside of the members’ control. These events include theft, vandalism, glass and windshield damage, fire, animal accidents, weather, or other acts of nature. RBFCU also requires that the policy name RBFCU as a loss payee and lien holder.

  • How much does a monthly Collateral Protection Insurance (CPI) policy cost?
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    At this time, a monthly CPI policy costs $140. We add this premium to the member’s loan balance each month we confirm that the member does not have an active comprehensive policy protecting the collateral.

  • How does a monthly Collateral Protection Insurance (CPI) policy impact my auto loan?
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    The monthly loan payment does not change, but we add the premium to the loan balance and the member must pay the loan in full before we can release the lien on the collateral. Since we add the CPI premium to the loan balance, this change can result in a balloon amount due at the end of the loan.

  • How do members know if a Collateral Protection Insurance (CPI) policy has been placed on their auto loan?
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    We notify members through mail that we added a policy to their loan. The letter details the coverage terms. Members also see the $140 premium added to their loan balance. We also notify members through an action banner within Online Banking and the RBFCU Mobile app. The action banner notifies the member that CPI was added to their loan and provides a link to the rbfcu.imcovered.com website to update their insurance information and avoid future CPI charges.

  • If members have questions about their Collateral Protection Insurance (CPI) policy, who can they call?
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    To speak with an insurance representative, members can call 833-482-4577.

  • When does RBFCU 'force place' a Collateral Protection Insurance (CPI) policy on their auto loan?
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    When we confirm that no active policy on the collateral exists, and the member did not take the requested action to insure the collateral properly within the timelines based on the following scenarios:

    • Members with expired, canceled, or impaired (insufficient) coverage have 42 days to provide proof of coverage to RBFCU
    • Members with new loans have 70 days from the booking date to provide RBFCU with proof of coverage
    • RBFCU is not listed as lien holder or loss payee
    • The member does not carry collision coverage on the collateral or they opt to carry liability only.
    • The member provided an Identification (ID) card instead of the insurance declaration page
  • Why is the member's Policy Declaration page required on their auto loan?
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    An Insurance Policies Declaration page summarizes the policy’s key details, which RBFCU needs when we confirm that the collateral financed by RBFCU has adequate insurance coverage. The Policy Declaration page must include the following information:

    • Agent contact information
    • Coverage (e.g., types and items coverage)
    • Coverage dates
    • Deductible
    • Limits
    • Policy number
    • Premium
  • Do the Collateral Protection Insurance (CPI) premiums impact a Guaranteed Asset Protection (GAP) policy?
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    GAP may not cover the cost of the CPI premiums because RBFCU adds the CPI fees to the loan balance. Depending on how many premiums RFBCU adds to the loan, this process affects future GAP settlement amounts, potentially resulting in an insurance deficiency.

  • I received an email from 'rbfcu@imcovered.com' requesting my proof of insurance for my auto loan. Is this a legitimate email?
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    Yes. RBFCU uses ImCovered.com for our Collateral Protection Insurance (CPI) tracking program, which allows RBFCU to monitor insurance coverage on loans that require collateral, like your auto loan. Members with auto loans may receive communications from rbfcu@imcovered.com requesting proof of insurance and other documentation. Click here to learn more about the Collateral Protection Insurance (CPI) tracking program.

    Please be aware, though, that fraudsters can imitate legitimate email addresses.

    If you are unsure about the authenticity of an email, you can always contact RBFCU to verify before taking any action.