Will I still have to pay my loan or lease after a total loss?
After your vehicle is declared a total loss, you may still owe money on your loan or lease if the actual cash value of your vehicle is less than what you owe. Purchasing loan/lease payoff coverage prior to an accident can provide financial security for you in case your vehicle is declared a total loss.
Loan/lease payoff coverage, commonly called "Gap" coverage, may pay the difference between the actual cash value of your vehicle and what you still owe on your loan or lease (less any deductible). The payment made under this coverage may not exceed 25% of the ACV.