WalletHub, Financial Company
@WalletHub
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.
People also ask
How does gap insurance work?
Gap insurance works by covering the difference between the balance on a car loan or lease and what the vehicle is actually worth if it is stolen or declared a total loss. For example, if you owe $24,000 on your loan and your car is worth only $20,000 when it's totaled, gap insurance would cover the $4,000 gap. Purchasing gap coverage ensures that you don't have to make loan or lease payments for a car...
read full answerWhat does gap insurance cover?
Gap insurance covers the difference between your auto loan and the car's depreciated value. In other words, gap insurance helps you pay off your auto loan or lease if you're no longer able to drive your car due to it being totaled or stolen.
It’s important to note that gap insurance only pays when your car is totaled or stolen, so you cannot file a gap claim if you simply can’t make your loan or lease...
read full answerDoes Progressive offer gap insurance?
Yes, Progressive offers a type of gap insurance called loan/lease payoff coverage. Loan/lease payoff insurance helps cover the difference between a totaled car’s actual cash value and the policyholder’s loan or lease balance, but will only pay up to a maximum of 25% of your vehicle’s value toward this difference.
Key Things to Know About Progressive Loan/Lease Coverage
- Progressive loan/lease payoff coverage costs $5 per month.
- Progressive loan/lease coverage does not pay for your deductible,...
Did we answer your question?