LEASE LOAN GAP COVERAGE

If you are thinking about leasing or buying a car, and looking to insure it, you will want to consider adding a Lease Loan Gap Coverage endorsement to your auto insurance policy. LLG Coverage is an extension of your auto’s physical damage chapter of your coverage.

In the event of total loss, your comprehensive and collision auto insurance coverage ordinarily provides you with up to the actual cash value of the vehicle minus depreciation. When you sign a lease or loan agreement, you are obligating yourself for the amount you actually financed, not accounting for the depreciation. That is the gap, between what you actually financed and are obligated to pay for and the depreciation value that your insurance policy will pay for.

At a cost of approximately 5% of your current comprehensive and collision premiums, LLG Coverage protects you from the "out-of-pocket" expense when just such a gap occurs. Although there are some stipulations, LLG Coverage will pay the gap between your lease or loan agreement and the depreciated value of your car if it is stolen, or was in an accident in which repair costs would outweigh the depreciated value, also known as "totaled."

There are occasions when a vehicle manufacturer will provide gap coverage as part of a lease agreement. You should make sure that coverage is in place before you lease.

If you have any further questions, please call us at Executive Insurance Group. Our team of experts can be reached Mon-Fri 8 a.m.-5 p.m. at 330.966.0080 locally, 800.981.0080 toll free, or email: info@executiveinsurance.com