Watch out for the gap
If you suffer a total loss to your vehicle, would your insurance coverage be enough to pay off your lease or loan contract? Maybe not.
Most auto insurance policies would pay the depreciated value of your auto, which may be lower than what you owe on it. This would leave you to cover the gap and pay the balance of any loans or leases out of your pocket, which could be thousands of dollars.
Bridging the gap
Gap coverage is available for an additional premium. This coverage added to your policy will pay the difference between the value of your auto and the unpaid balance on your lease or loan agreement in the event of a total covered loss.
Gap coverage costs so little, but could be worth thousands of dollars to you and your family. Contact us today for details.
Even if you buy…
There is still a danger that the loan buyout could be greater than the depreciated value of the car. Just like lease gap, you would be responsible for the difference. This is especially true with long term loans of 5 years or more.
We can help in either case.