The deductible for Collateral Protection Insurance (CPI) is $500. This amount applies to both damages to a leased vehicle in the event of an accident and when a vehicle is declared a total loss.
Understanding Your CPI Deductible
When you have CPI coverage, this deductible is the out-of-pocket amount you are responsible for before your insurance coverage begins to pay for damages.
- For Vehicle Damages: If your leased vehicle sustains damages in an accident, CPI covers the repair costs after you pay the initial $500 deductible.
- For Total Loss: Should your leased vehicle be declared a total loss, the CPI policy will satisfy the entire lease amount, minus the $500 deductible. This ensures that the outstanding lease obligation is met, protecting you from significant financial burden.
Key Aspects of the $500 CPI Deductible:
- Consistent Amount: The $500 deductible remains consistent whether you're dealing with repairs for accident damages or a complete write-off of the vehicle.
- Out-of-Pocket Expense: This is the portion you are required to pay directly.
- Coverage Activation: Once the deductible is paid, your CPI coverage activates to cover the remaining eligible costs.
How the CPI Deductible Applies
The table below illustrates how the $500 deductible functions under different scenarios:
| Scenario | Deductible Applied | Coverage Provided by CPI |
|---|---|---|
| Accident Damage | $500 | Covers all damages to the leased vehicle after the deductible is paid. |
| Total Loss | $500 | Satisfies the entire lease amount minus the deductible. |
This standard $500 deductible ensures that while you bear a small initial cost, your significant financial liabilities related to the leased vehicle's damage or loss are covered by the CPI policy.
