Is There Gap Insurance For Business Vehicles?

Because vehicles depreciate in value so rapidly, it's not uncommon for people and businesses alike to find themselves owing more on a car, truck or van than the vehicle's current worth. And since most commercial auto insurance policies pay only for what the vehicle is currently worth, you may wind up owing more on a vehicle than insurance will cover if it's totaled.

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.

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