Ask AI: Will a bank repossess a vehicle that makes a CPI insurance claim?

Collateral Protection Insurance (CPI) is used when a borrower doesn't have full coverage on their vehicle and the lender needs to protect their interest. If a CPI insurance claim is made, it means that the vehicle has suffered some kind of damage or loss. However, making a CPI claim alone doesn't typically result in the bank repossessing the vehicle. As long as you continue to make your loan payments on time, the bank won't typically repossess the vehicle. But remember, each bank may have different policies and it always pays to be familiar with the terms of your specific loan agreement. If you have a loan and are worried about repossession, the best thing to do is to maintain communication with your lender. If you're struggling to make payments, they may be able to work out a modified payment plan or other arrangement with you.