Loan and Lease Gap Insurance

Gap insurance can help you cover the balance on your wrecked loaned or leased vehicle.
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What would happen if your leased car is totaled in an accident, but you still owe more money on the vehicle than it’s actually worth? With Grange’s Loan and Lease Gap Coverage, we’d pay the balance on your lease and help you get back on the road. Without gap insurance coverage, you could end up with a totaled car and a lease to pay.

When to consider gap insurance

Ask your independent agent about gap coverage if either of these questions apply to you. Do you:

  • Drive a loaned or leased vehicle?
  • Owe more than your car’s market value?

Loan and lease gap insurance

Accidents happen. If you get into an accident where your leased car is damaged beyond repair, your standard comprehensive and collision policy will only reimburse you the depreciated value of your vehicle. With gap insurance, you would receive the depreciated value of your vehicle as well as the amount you’d need to pay off your loan or lease, potentially saving you thousands of dollars.

What’s depreciation?

Remember the day you drove your loaned or leased vehicle off the sales lot? At that moment, your car instantly lost some of its value. In other words, its value depreciated. On average:

  • A car will be worth about 20% less than the original value just one year after purchase.
  • Within the first five years, most cars will lose about 60% of their original value.

So, this means if you have a loan or lease on that vehicle, you may owe back more money than what your car is worth. And when this happens, gap insurance coverage can really save the day if your leased car is totaled in an accident.

Cover your insurance gap

Contact your independent insurance agent to see if adding Loan and Lease Gap Coverage to your Grange auto insurance policy is a smart option for you. Or get a quote from an independent agent near you!

 

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Why we work with independent insurance agents


*Available coverages and discounts may vary by state. Please contact your Grange Independent Agent to discuss coverage details, discounts and eligibility requirements. For specific coverage details, always refer to your policy. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies.