08/17/2026
Good morning to all of our valued customers!
We are making an important update to our policies regarding insurance to ensure every vehicle that leaves our lot remains fully protected until paid off.
You will still have the option to choose full‑coverage insurance that meets our requirements or liability‑only insurance with CPI added to the account. CPI is not optional—if your insurance does not meet our full‑coverage requirements, CPI must be activated on your account.
Moving forward, we will be more strict with full‑coverage policies. Each month, we complete insurance verifications for all customers who carry full coverage. During these checks, we confirm that:
- The policy is active with no lapses or pending cancellations
- Dream Auto Sales is listed as the lienholder/loss payee
- Your deductible meets our required amount
We understand that some customers may not know the difference between full coverage, liability, or CPI, so we want to help educate and reduce confusion. This information will also be posted in the office for easy reference.
Understanding CPI Coverage vs. Full Coverage Insurance
What is CPI?
Collateral Protection Insurance (CPI) is not the same as full‑coverage auto insurance. CPI protects the financed vehicle and the lienholder’s interest when full coverage is not in place. It does not provide personal protection for you as the driver.
CPI May Help Cover:
- Damage to the financed vehicle from an accident
- Certain losses if the vehicle is stolen or totaled (subject to policy terms)
CPI Does NOT Cover:
- Liability if you cause an accident
- Damage to another person’s vehicle or property
- Medical bills
- Rental reimbursement
- Roadside assistance
- Most protections included in a personal auto insurance policy
What is Full Coverage Insurance?
Full coverage is a personal auto insurance policy designed to protect both you and your vehicle. Depending on your policy, it may include liability, collision, comprehensive, medical payments, uninsured motorist coverage, rental reimbursement, roadside assistance, and more.
Which one is better?
Full coverage provides much broader protection for you, your passengers, and your finances. CPI is not a replacement for personal auto insurance—it only protects the lender’s interest in the vehicle.
Please remember:
CPI does not meet Tennessee’s legal insurance requirements. You are responsible for maintaining any insurance required by state law and by your loan agreement.
With that being said, moving forward, if we discover during our insurance verification process that your full‑coverage insurance policy is no longer active, we will activate CPI immediately to keep the vehicle protected and to safeguard our interest in the event of an accident. This requirement is outlined in your contract, and we will be enforcing it consistently from this point forward.
If you have any questions, please call or stop by the office anytime. We’re always happy to help explain your options and make sure you feel confident and informed.
