The short version
- Loan and lease contracts commonly require collision and comprehensive coverage.
- A deductible limit and a named loss payee are common requirements.
- Gap coverage is sometimes required or offered; its terms vary.
Why they ask
While there is a loan or lease, the car is collateral. The lender wants it protected, so contracts often require physical-damage coverage, not only liability.
Typical terms
Look for a maximum deductible, proof of insurance within a set number of days, and a loss payee, which means the lender is named on the policy so it is paid first if the car is totaled.
Gap coverage
If a car is totaled, the payout is based on its value, which can be less than what is owed. Gap coverage is meant to address the difference, and it can come from the dealer, lender or insurer.
Read the contract
The contract is the final word on what your lender requires. We are not a dealer or lender and do not give quotes.
Camberlo is an information website, not an insurance company, agency, or broker. This site explains how auto insurance works. It does not sell coverage, produce quotes, introduce you to agents, or share what you send us with insurers, and it is not insurance, legal, or financial advice.