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Does Elephant offer gap insurance?
I just bought a pretty expensive car and am financing it. My dealer suggested that gap insurance might be a good idea if I’m worried about getting in an accident, but I’m not sure what the best place is to get it. Does Elephant have gap insurance?
Brittni Brinn · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Extra insurance can definitely give you some piece of mind if you have a lot owing on your car loan. Elephant doesn’t offer
gap insurance
, but they do have loan/lease coverage which serves the same function.With Elephant’s loan/lease coverage, 25% of your vehicle’s depreciated value will be paid out in the case of a car accident if you still owe more on your loan than the car is worth (if you’re “upside down”).
Let’s say your car has a depreciated value of $17,000, but you still owe $20,000 on your loan after your car is totaled. That’s $3,000 that will not be paid out by collision insurance. Loan/lease coverage will provide you with 25% of $17,000, which is $4,250—which is more than enough to pay the difference!
However, there are some caveats to be aware of. Elephant’s loan/lease payoff coverage will not help you with:
- Security deposits
- Extended warranties
- Carry over balances from previous loans
- Service contract fees
- The deductible for your collision/comprehensive coverage
- Missed payments on your loan/lease payments
- Financial penalties for breaking the terms of the loan/lease
A benefit of going with Elephant’s loan/lease payoff coverage is that you can add it to your
car insurance
policy at any time, while there’s usually a time limit on when you can buy gap insurance with other providers. The best way to see which kind of coverage is best for you is to request a quote from at least three different providers and speak to an agent if you have any concerns.View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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