As stated in your vehicle loan agreement, you are required to provide evidence of your current insurance policy, including The Partnership FCU listed as the lien holder. This confirmation should come via policy information documents from your insurance company.
When you first take out an insurance policy, if you supply The Partnership FCU as the lien holder, there is no further action required unless you switch to a new insurance carrier. If you are refinancing a vehicle with The Partnership FCU that you already own and had previously financed elsewhere, you need to update your insurance policy to reflect The Partnership FCU as the new lien holder.
An acceptable insurance policy must meet, at a minimum, the following requirements:
- Named Insured
- Policy Period
- Policy Number
- Coverages: Policies must have comprehensive and collision coverages with deductible limits not to exceed $1000. Comprehensive and collision can be combined into one coverage; physical damage or all perils, instead of being separated. Comprehensive can also be termed as Other Than Collision (OTC), Comp or Specified Perils or Causes of Loss
- Lien Holder listed as The Partnership FCU: The lien holder clause may also be termed Loss Payee, Additional Loss Payee, Third Party Interest or Other Interest
- Collateral Description and VIN: The insured collateral description must match your loan’s assigned collateral. The collateral description is considered to be the year, make and a minimum of the last six digits of the vehicle identification or serial number.
As the lien holder on your vehicle and many others, we depend on comprehensive and collision insurance to protect our credit union from uninsured loss. The terms of your loan contract require this coverage for the life of the loan.
If and when coverage lapses, or we have reason to believe coverage has lapsed, we place a Collateral Insurance Policy on your loan with the cost added to your principal. This will cause your payment to increase, as it is recalculated to ensure your loan payoff does not extend beyond the original term. This is not a substitute for traditional insurance. You can avoid the cost of Collateral Protection Insurance by diligently keeping your insurance policy active, and ensuring that we are notified if anything changes.
If you receive a letter from us asking for proof of your insurance, we encourage you to respond quickly to avoid any inconvenience. Visit us online to update your insurance policy, using the sign in information provided in the letter.
Contact us via phone, fax or mail with any questions.