Insurance Glossary

Loan/Lease Payoff Coverage

Auto

Definition

Similar to gap insurance, this coverage pays the difference between your vehicle's actual cash value and the remaining loan or lease balance after a total loss.

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Related Terms

Auto insurance coverage that pays the difference between what you owe on your car loan or lease and the vehicle's actual cash value if it's totaled or stolen.

Collision Coverage

Insurance coverage that pays for damage to your vehicle resulting from a collision with another vehicle or object.

Comprehensive Coverage

Insurance coverage for damage to your vehicle from causes other than collision, such as theft, vandalism, fire, weather events, or hitting an animal.

The scope of protection provided under an insurance policy, including the types of losses and risks that are covered.

Liability Coverage

Insurance that covers legal responsibility for injuries or damage caused to others or their property.

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