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Collateral Insurance FAQs
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Collateral Insurance
Frequently Asked Questions
1. Why do I need to provide my insurance information?
As one of the conditions of granting your loan, you are required to maintain Comprehensive and Collision coverage protecting our interest until your loan is paid in full. By giving your insurance agent our name and address as Loss Payee, we will generally receive a copy of any change to your coverage. If a letter was sent to you because we did not receive a copy of your policy/renewal/reinstatement from your insurance agent or company, we ask for your help to show us that you have met the requirement.
2. How can I provide you with my insurance information?
You can submit your insurance information in the following ways:
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1. Online
2. Fax: 888-883-5605
3. Mail:
SWBC
RE: Eglin Federal Credit Union Collateral Insurance
P. O. Box 691667
San Antonio, TX 78269-1667
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If you have any questions, please contact our Insurance Department at 866-401-5464.
3. What should I do if I do not have insurance?
Maintaining full coverage insurance on your vehicle is a condition of your loan. You should contact the insurance agency or company of your choice and purchase Comprehensive and Collision coverage naming us as the Loss Payee.
4. What happens if I do not buy insurance?
If you do not buy your own insurance, we may buy insurance to protect our collateral. The insurance we buy will generally be more expensive than what you can buy yourself. The premium for this insurance will be added to your loan and your payment will increase to cover the cost. The insurance we purchase will primarily cover our interest in your vehicle. It will not offer you the protection you can get when you buy your own insurance. The insurance we purchase does not provide liability coverage which is required by the State of Florida and most other states. We strongly urge you to purchase your own insurance.
5. What does "Loss Payee" mean?
"Loss Payee" or “Lien Holder” is used on your insurance policy to refer to the financial institution that you used to finance the purchase of your vehicle. Eglin FCU is the lien holder if you currently have financing with us. Your insurance company will include our name as loss payee on any check for payment of damage claim proceeds.
6. I have insurance; why did I get a letter?
A letter was sent because we did not receive a copy of your current insurance coverage. Generally this is handled by your insurance agent or company, but in this case it was not.
One of the reasons we may not have received your insurance policy is that we are not listed as Loss Payee or the address that your insurance agent/company has is incorrect.
You may have received a letter because the insurance policy sent to us did not meet certain requirements. Your letter outlines the specific reason and what you should do to correct the situation.
If your letter states your insurance has expired, we have not received a copy of the renewal. If your letter states your insurance has been canceled, we have not received a copy of the reinstatement or policy.
7. My damage claim check has Eglin FCU listed as payee; what do I do?
Eglin FCU will require that you have your vehicle repaired by a certified collision repair center or body shop of your choice. Bring your damage estimate from the collision center to any branch and we will endorse the check payable to the collision center. If the repairs have already been completed, bring your paid receipt. If you live out of the area, mail this information with your check and we will promptly return it with our endorsement. Please include a phone number.
8. I don’t want to repair my damaged vehicle; what can I do?
In most cases we will require you to repair the vehicle so the value of the collateral is restored. In certain cases, we may allow you to apply the insurance proceeds to pay down the balance of the loan. These cases typically involve a loan with a small balance or when the balance on the loan is much smaller than the value of the vehicle. Contact any Branch Manager for more details.
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