Determining if you have term insurance through your car insurance policy is simple. Car insurance documents usually have a page that lists the coverages in your policy, including optional coverages, such as car collision coverage and comprehensive auto insurance coverage. Look for gap coverage in this list. Gap insurance for a leased car covers the difference between the vehicle's ACV and what you still owe in the lease.
Therefore, if your vehicle was stolen or destroyed, your comprehensive coverage or collision coverage would pay an amount equal to the vehicle's ACV. If that amount isn't enough to cover the remaining lease payments, your rental expense insurance may cover them instead. Keep in mind that you need comprehensive and collision coverage to add uncovered coverage to an auto insurance policy. As a California driver, you're better off using Insurify to compare auto insurance quotes and policies and find the best deal on emergency insurance that gives you the protection you deserve without overpaying.
You can check your current car insurance policy or the terms of your lease or loan agreement to see if you have provisional insurance. The purpose of Gap insurance is to help you cover the financial difference between what you owe and what the car is worth. Getting temporary insurance from the car dealership or from a lender means spending much more money than necessary. If you buy a new vehicle and your car is completely destroyed, Gap insurance can help reduce the gap between the amount of your loan and the depreciated value of your car when you take it out of the parking lot.
Gap insurance is optional coverage that you can add to your insurance policy to protect yourself from depreciation. The cost of GAP insurance depends on factors such as the value of your car, the car insurance company you choose, your location and your age. It's important to know that some car dealers may try to tell you that you need to take out supplemental insurance with them, which isn't accurate. You can only add term insurance to your policy if you already have collision coverage and comprehensive insurance.
Gap insurance is optional car insurance coverage that applies if your car is stolen or is considered a total loss. Gap insurance coverage bridges the gap between what you owe on your car loan and what your car is actually worth. To be eligible for provisional insurance, car owners must have comprehensive and collision coverage in their auto insurance policy.