Insurance Information
Insurance verification link https://www.myinsuranceinfo.com/MyInsuranceInfo/
Collateral Protection Insurance (CPI) – As a requirement of the loan agreement, members must maintain insurance protection on property used as collateral on a loan. AAFCU will automatically purchase collateral protection insurance (CPI) when a borrower’s vehicle insurance lapses. The cost of the collateral protection insurance is added to the borrower’s loan balance as stipulated in the security agreement.
- Borrowers must maintain full coverage (collision and comprehensive) insurance on vehicles until the loan is paid in full.
- Maximum deductible is $1,000
- A loss payable endorsement in favor of AAFCU must be included in the insurance policy, and a copy must be received by AAFCU and its CPI carrier
Registration and Title (Lien Recording) Information
If Purchased from the Dealership: In general, the dealership will complete the title work and lien placement so that you may register your vehicle.
If Not Purchased from the Dealership: Your loan officer at Air Academy Federal Credit Union will assist you in completing all the necessary documentation to complete your title application and record Air Academy Federal Credit Union as the lien holder so that you may register your vehicle.
What is a lien?
A lien is the right to take and hold or sell the property of a debtor as security or payment for a debt. Air Academy Federal Credit Union requires members who offer collateral to secure a loan, such as a car loan or personal expense loan, to record Air Academy Federal Credit Union as the first lien holder on that collateral. This means that if a member defaults on the loan, Air Academy Federal Credit Union can take the collateral and sell it to pay off the loan.
