What is the definition of Gap Insurance?

Gap Insurance is an option in automobile insurance that covers what the customer owes the leasing or financing company and the actual cash value of the car at the time it was damaged or stolen. Gap insurance is mainly used when someone would rather lease or rent a car than to buy it.

The coverage provides protection to the renter when the rented vehicle suffers a loss even before the lease contract has expired or before the terms of the lease are fulfilled.

Some conditions must be in place for gap insurance coverage - the lessee will pay any applicable deductibles (as according to the lease contract), the lessee must be up-to-date in the payment of the rent (otherwise the coverage is null and void) and that there is a possibility that the lessee will keep on paying the rent until such time that the gap insurance is paid to the renter or until such time that the terms found in the lease contract are fulfilled.

• Registered Principal
• Businessowners Policy (BOP)
• Captive Agent
• Reinstatement
• Broker