Take note of what these two endorsements are in your current insurance policy.
Every insurer should be aware of the gaps in coverage in these four endorsements.
Auto Loan/Lease Gap
This is a first party coverage intended for the benefit of the insured. The coverage allows the insured to satisfy its contract with the lienholder. The endorsement pays the difference between the amount paid by the physical damage coverage and the amount owed, although this only happens when there is a total loss. The payment is dependent on the value associated with the specific value.
Expenses such as overdue payments, usage penalties, and security deposits are excluded from coverage. Consider this endorsement for all insureds with leased or recently-purchased vehicles.
When the insured suffers a first-party loss of a covered vehicle and cannot use the vehicle until it is repaired, a replacement car should be provided. Rental Reimbursement Coverage is designed to reimburse the insured for the cost to rent a replacement vehicle while a covered vehicle is being repaired.
This policy is subject to three “maximums”: a maximum per day limit; a maximum number of days; and a maximum total per loss, per vehicle. Coverage limits should be based on the type of vehicles being replaced. While private passenger autos can easily be rented for $30 a day, rental of a large work vehicle may run as high as $500 or $600 a day.