What is the Definition of Gap Insurance?

What is the Definition of Gap Insurance?

An automobile insurance option, available in some states, that covers the difference between a car’s actual cash value when it is stolen or wrecked and the amount the consumer owes the leasing or finance company. Mainly used for leased cars. (See Actual cash value)

Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/

Label: Insurance
Theme: Dictionary of Insurance Terms

Other Questions: What is the definition of Annuity?

What is the Definition of Gap Insurance?

What is the Definition of Gap Insurance?

You can find random definition and meaning of insurance terms below:


Meaning of Ocean Marine Insurance in Insurance Terms

Coverage of all types of vessels and watercraft, for property damage to the vessel and cargo, including such risks as piracy and the jettisoning of cargo to save other property. Coverage for marine-related liabilities. War is excluded from basic policies, but can be bought back.


Meaning of Open Competition States in Insurance Terms

States where insurance companies can set new rates without prior approval, although the state’s commissioner can disallow them if they are not reasonable and adequate or are discriminatory.


Meaning of Operating Expenses in Insurance Terms

The cost of maintaining a business’s property, includes insurance, property taxes, utilities and rent, but excludes income tax, depreciation and other financing expenses.


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