What is Loan Gap Coverage
When a financed vehicle is declared a total loss and your insured’s outstanding loan balance is greater than the actual cost value of the vehicle, an insurance carrier will pay the difference between the outstanding loan balance and the actual cash value of the vehicle. Who Benefits Most: An owner of the financed vehicle. Claim Scenario: Like many small business owners, Jane financed the Ford F350 truck she uses for her gardening business. Just a year after purchase, her employee totaled the vehicle on the highway between customer sites. Due to the steep depreciation in vehicle value, particularly in the first year of ownership, the truck was worth less than the… Read More »What is Loan Gap Coverage