Loan/ Lease Payoff

Car loanLoan/lease coverage is the coverage that pays the difference between how much you owe for the vehicle and how much your car insurance pays if your vehicle has undergone total loss or if your vehicle is stolen and is not recovered. If you want to add loan/lease coverage to your policy collision coverage and comprehensive coverage are the coverages is a must which should be added before the loan/lease coverage. Consider adding the loan/lease coverage to the insurance policy if you are shopping for the insurance by taking a quote on your car. If the driver is having loan/lease balance on his car through any of the financial institution and not by an individual then applying loan/lease coverage on your policy will be helpful.
If you are involved in a very serious car accident without loan/lease coverage, your car insurance company might declare that your vehicle is a total loss and give you a settlement check much less than what your vehicle owes on your unpaid car loan. Along with the replacement vehicle what you had decided to purchase you also need to continue paying the old car loan in addition. When you sign the contract while you are leasing a vehicle, in the contract loan/lease coverage is added as a part of the agreement. Before buying the loan lease coverage read properly all your loan lease documents carefully. Many of the insurance companies loan lease coverage is available if you have got the car loan from a recognized financial company. The coverage will not be applied if you have borrowed money from a friend or a family member to obtain the vehicle. After the collision coverage and comprehensive coverage has paid the actual value for your vehicle, then the loan/lease coverage will issue a check. This value will be the difference between the collision and comprehensive coverage and the amount your vehicle loan will currently owe.

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