Gap insurance for semi trucks

FRIDAY, JULY 22, 2016

If your business is financially able to buy the vehicle outright, you won't need to worry about this. However, noting this gap is important if your business is financing a vehicle (or multiple vehicles). Fortunately, you can add gap insurance onto your commercial auto insurance policy to receive extra coverage for similar instances.

Gap insurance makes up the difference between what you owe on the vehicle and what insurance can offer you based on the vehicle's current value. For instance, let's say a vehicle is totaled and your business gets $15,000 from insurance to cover the vehicle's current market value. But your business still owes $25,000 because the vehicle was new when it was purchased. This may result in your business continuing to pay off a vehicle that no longer exists. Gap insurance can step in and help cover that $10,000 gap so your business doesn't have to take the financial blow.

When buying commercial auto insurance for new business vehicles, be sure to ask your agent about tacking on gap coverage for extra protection.

Get the coverage you need. Call Integrity Network Insurance Group, LLC at (512) 989-6006 for more information on the commercial auto insurance policies we offer.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.

What is Commercial Vehicle GAP Insurance?

Commercial Vehicle GAP Insurance for your van, light commercial vehicle or pickup can protect you in the event of a total loss.

Commercial Return to Invoice GAP will, in the event of a total loss, pay the difference between the comprehensive insurer’s settlement and the original invoice price of your vehicle or the finance settlement figure, whichever is higher at the time.

Commercial Vehicle Replacement GAP will instead cover the difference between your motor insurer’s settlement and the replacement cost of a vehicle matching the original at the time of purchase, or the outstanding finance balance, whichever is higher.

If the vehicle is on a lease or contract hire agreement, Commercial Contract Hire GAP will cover your liability under the contract by paying up to 100% of the outstanding rental payments for the vehicle and cover any shortfall in the market value settlement provided by the insurer. For an additional premium, you can also protect the initial rental on the agreement up to a maximum of £3,000.

Commercial Truck GAP Protection

Purchasing a truck or trailer? Reduce your financial exposure!

When you finance a truck or trailer, its value will depreciate over time. If the unit is stolen or destroyed, you could be left owing a substantial amount of money. You need protection against the "GAP" - the difference between the actual cash value covered by your insurance company and the balance you owe.

Available for Light, Medium, and Heavy Trucks

Vehicle classification based on Gross Vehicle Weight (GVW)

Benefits are paid up to $50,000

The amount paid on any one claim shall not exceed $50,000 in total.

Lending to Value

Programs available with up to 105%, 115%, or 150% of MSRP or NADA Truck Retail value depending on vehicle type.

Protection for the Term of the Loan or Lease

The length of coverage on Loans or Leases for Light, Medium, or Heavy Trucks is up to 84 months.