What is Gap Insurance?
Gap Waives What Insurance Doesn't Cover.
If your heavy truck is ever declared a total loss due to an accident, theft or natural disaster, your insurance company might only reimburse you an amount equal to their assessed market value of your heavy truck. Unfortunately, there may be a significant gap between what your insurer pays and the balance you owe on your truck loan.
How Gap Insurance Protects Your Investment
Here is an example of how gap insurance works if your commercial truck is declared a total loss due to an accident:
| Details | Value |
|---|---|
| Outstanding loan balance insurance assessment of heavy truck's actual | -$38,000 |
| Cash value less $1000.00 deductible | -$28,000 |
| Your potential exposure | $10,000 |
| Covered by GAP | $10,000 |
| Out-of-pocket expenses with GAP | $0 |