lease gap coverage
Lease gap coverage is an optional coverage endorsement to a commercial auto policy that applies in the event of a total loss to a covered auto that is financed or has a leased agreement.
Additional Information
At the time of the total loss, if the amount of outstanding indebtedness on the auto is greater than what the insured could recover under actual cash value (ACV) or cost to repair or replace, a lease gap endorsement covers the deficit.
Summary
Synonyms
auto loan coverage
