Debt Cancellation Coverage

Did you know we offer an alternative to comprehensive and collision insurance? It’s called debt cancellation coverage and it’s cheaper than full coverage insurance. In short, in the event of a total loss to your vehicle, the payments due are cancelled! It can also be billed with your normal vehicle payments for convenience.

Voluntary Debt Cancellation Coverage Addendum is an alternative to Comprehensive and Collision Insurance that is accepted by our Finance Company. DCC is only offered to Qualified Customers.

In the event of a total loss to the collateral, the payments due are cancelled.

Not all customers qualify for Debt Cancellation Coverage.

Ask your Representative about qualifying for this benefit.

Frequently Asked Questions

Is this Insurance? No, it is an agreement between you and the Finance Company.

Is there a Deductible? No.

Do I need Liability Insurance? Yes, The State requires Liability Insurance.

Does DCC include Liability Insurance? No, you must obtain liability insurance from an insurance company.

Will it fix my car? No, Comprehensive and Collision Insurance will cover repairs, but generally costs more than DCC. DCC cancels your debt on a total loss.

Can I cancel DCC? Yes, if you purchase Comprehensive and Collision Insurance that meets the finance terms as stated in the credit agreement.

How will I pay for it? DCC will be billed with your normal vehicle payments.

Will I save Money? Yes, normally it is less costly than having Comprehensive and Collision Insurance.

Terms

VOLUNTARY DEBT CANCELLATION COVERAGE ADDENDUM is an Addendum to the RETAIL INSTALMENT CONTRACT OR PROMISSORY NOTE AND CREDITOR / BORROWER AGREEMENT that is between the parties in the Finance Document and amends and supplements the Finance Document:

COVERAGE. In the event of a TOTAL LOSS to the COLLATERAL, and compliance by Buyer/Borrower with the LOSS DOCUMENTATION PROCEDURES, the payments due from Buyer/Borrower to the Creditor will be credited (cancelled) in an amount equal to the LESSER of the NET PAYOFF or the actual dollar amount of the LOSS of the COLLATERAL as determined in good faith by Administrator. Buyer/Borrower will continue to remain responsible for payment of any items stated on the reverse side of the contract under EXCLUSIONS No credit or consideration will be given or paid to Buyer/ Borrower if the ACV exceeds the NET PAYOFF on the date of LOSS, which credit or consideration, if any, is expressly waived by Buyer/Borrower.

CANCELLATION: You may cancel this Addendum if you purchase Comprehensive and Collision Insurance (“C & C Insurance”) on the COLLATERAL from an alternative source reasonably satisfactory to Creditor. To do so, you must return to the Creditor, sign a Cancellation Request Form and provide verifiable proof of C & C Insurance reasonably satisfactory to Creditor, naming Creditor as loss-payee/additional insured. We reserve the right to cancel this Addendum for non-payment or for intentional misrepresentation in obtaining it, or if the COLLATERAL is determined to be ineligible or excluded from coverage.

YOU ACKNOWLEDGE AND AGREE THAT YOUR ACCEPTANCE OR REJECTION OF THIS PROGRAM IS
VOLUNTARY AND IS NOT A CONDITION PRECEDENT TO, OR A CONSIDERATION REQUIRED TO OBTAIN CREDIT.
THIS IS A SUMMARY OF THE DEBT CANCELLATION CONTRACT.

PLEASE READ CONTRACT FOR ALL THE TERMS.

GAP Insurance

GAP (Guaranteed Asset Protection) insurance coverage makes up the difference between what a person owes on a vehicle and that vehicle’s actual cash value if there’s an accident and the car is declared a total loss.

Coverage for the amount you owe on your vehicle that the insurance company does not cover.

Affordable

For minimal cost you can protect yourself from being upside down in a vehicle and make it easier to purchase your replacement vehicle.

Deductible coverage

Covers your primary vehicle deductible up to $500 or $1000.

Flexible coverage up to 72 months

Purchase coverage for the full term of your loan or for the period of your loan when you have the most risk.

Coverage for multiple risks

Coverage for total loss of your vehicle as defined by your primary insurance carrier. Examples include collision, fire, flooding, hail, theft, natural disasters.

GAP Insurance covers you for the difference between what you owe and what your vehicle is worth.

Collateral Protection Insurance

Collateral Protection Insurance (CPI) is a force-placed product which covers your creditor’s interest in your vehicle against any physical damage, in the event you do not obtain or maintain your own insurance as required in your credit agreement.

Your Cost

$83.07 added to every bi-weekly payment

You may benefit from CPI! While claim payments on CPI go to the creditor, the payments may be credited to your account or used to repair the vehicle at the creditor’s discretion.

CPI fulfills the creditor’s physical-damage insurance requirement in the credit agreement.

CPI Does Not Cover

Liability coverage for damage or injury you cause to others.
Bodily injury or no-fault coverage.
State-required financial-responsibility coverage.
Your full financial interest in the vehicle.

While CPI is force-placed, you may still obtain alternative acceptable physical-damage insurance from a licensed company at any time. Give proof to the creditor so CPI can be cancelled and any unused premium credited, as applicable.

If Your Vehicle is Damaged

Report it
Contact your sales or service representative promptly.

Follow the claim process
Coverage is subject to the CPI policy’s terms and conditions.

Pay the deductible
You are responsible for the applicable deductible on a paid claim.

Liability insurance is still required. CPI is not liability insurance, and does not meet any state’s financial-responsibility law. You are responsible for obtaining and maintaining all state-required liability coverage on your own.

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