Always check your lease agreement first.
Gap insurance is usually included in the price of a lease. But not always.
What Is Gap Insurance?
Gap insurance is coverage that is usually added onto your existing auto collision policy when you lease a car in Ohio.
It may pay the difference between the balance of a lease or loan due on a vehicle and what your insurance company pays if the car is considered a covered total loss.
Let’s say you lease a new car valued at $30,000.
How much you pay for the lease is determined by the original value of the car minus the estimated value of the car at the end of the lease term. So if the original value was $30,000 and the value at the end of the term is $20,000, you would be making payments on the difference—$10,000.
The moment you drove the car off the lot, it lost up to 20% of its value. If you total the car before the lease runs out, you could owe the dealer a significant amount of money for a car you can’t even drive.
Gap insurance can help cover this cost.
For more information on gap insurance and auto coverage, contact the team at Burkhart Insurance Agency.