Gap Insurance
The purpose of gap insurance coverage for your commercial trucks is to protect the lender or the company you are leasing your commercial truck from incurring any losses if you truck is totaled.
Gap insurance works with collision coverage and Comprehensive Coverage
For example: If you owe $50k on your truck and it is totaled. And the insurance adjusters pays an actual cash value of $45k. And your deductible is $1k. You get a check for $44k. You would look to your gap insurance to makeup the pay the $4k difference bringing the total payout from your insuring company to $49k.
Here is an example of gap insurance coverage from a commercial truck insurance policy
Insurance of SECTION III – PHYSICAL DAMAGE
COVERAGE of the BUSINESS AUTO COVERAGE
FORM:
1. We will pay for “loss” as follows:
a. Total Losses Subject to a “Finance
Agreement”
With respect to a covered “auto” the most
we will pay for a total “loss” where a “finance
agreement” exists and the stated value
shown in the Vehicle Schedule or the
Declarations or the Monthly Vehicle Reports
is equal to or greater than the “outstanding
financial obligation” is the greater of:
(1) The “outstanding financial obligation”
under a “finance agreement” for the
covered “auto” at the time of loss; or
(2) The actual cash value of the covered
“auto” at the time of the “loss”;
How to get started on your quote
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