What does Lease Gap Coverage mean? Read on to discover the definition & meaning of the term Lease Gap Coverage - to help you better understand the language used in insurance policies.
Lease Gap Coverage
Optional coverage available by endorsement to a commercial auto policy that applies to increase the amount of recovery in the event of a total loss to a covered auto that is subject to a loan or lease agreement and 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.
We hope the you have a better understanding of the meaning of Lease Gap Coverage.