Isn’t gap coverage available as an endorsement to an auto insurance policy?
Yes, but few people take advantage of this coverage option or the agent doesn’t add it the auto insurance quote. Some insurance companies don’t offer it at all; and often when they do the coverage is more limited; for example, it typically won’t pay the borrower’s deductible amount. The gap endorsement offered by auto insurance companies isn’t life-of-loan coverage. If the customer changes his auto insurance, he/she may lose gap protection endorsement. Buying a stand-alone gap insurance policy ensures that the customer’s vehicle and loan will be continuously covered.
