What is Lease Loan Gap Coverage?
If you are thinking about leasing or buying a car, you might consider adding Lease Loan Gap (LLG) Coverage to your auto policy. LLG Coverage is an extension of your auto’s physical damage coverage. Ordinarily, your comprehensive and collision coverage provides you with up to the actual cash value (the vehicle’s cost minus depreciation) in the event of a total loss. When you sign a lease or loan agreement, you may be obligating yourself for an amount higher than the vehicle’s actual cash value. At a cost of approximately 5% of your current comprehensive and collision premiums, LLG Coverage protects you from out-of-pocket expense when such a “gap” occurs. Although there are some limitations, LLG Coverage will pay up to your lease or loan amount if your car is stolen or if the cost of repairs is greater than its salvage value. Contact our office and we’d be happy to discuss this coverage further. Note: Some car manufacturers may provide gap coverage as part of the lease agreement — check
