WalletHub, Financial Company
No. Elephant Insurance does not have gap insurance. Elephant offers loan/lease payoff insurance instead. Elephant’s loan/lease payoff coverage works pretty much the same way as gap insurance, covering the difference between what your car is worth at the time of a total loss and what is owed on the loan or lease. Specifically, Elephant loan/lease payoff insurance covers the remaining loan or lease balance after your comprehensive or collision insurance has paid the actual cash value (ACV) of your vehicle, and after you have paid your deductible.
The ACV of your car is the vehicle’s depreciated value, which might be less than what you owe on your lease or loan. Typically, loan/lease payoff coverage only pays a percentage of this “negative equity,” but this is not the case with Elephant.
The main difference between traditional gap insurance and Elephant’s loan/lease payoff coverage is that gap insurance typically must be purchased within 30 days of buying a new (or new-to-you) vehicle. Loan/lease payoff coverage from Elephant Insurance can be added to your policy at any time, but there may be some limits on how old your car can be to qualify.
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