What Stop Gap Liability Covers

Stop Gap liability coverage covers plenty of options for auto insurance protection, especially when someone is driving while on the clock. Stop gap coverage, also called guaranteed auto protection, is one of the best investments a driver can make. Stop gap coverage is a great way to protect your investment. Also, it ensures you don’t sustain a financial loss if you file a claim.

Stop Gap Liability

There are many other benefits to a stop-gap liability policy. You will understand soon what a policy covers and why you might need it. 

Who Stop Gap Coverage Benefits

If you’re wondering whether you need stop-gap coverage, you should first understand who it benefits. Stop gap coverage can help anyone. It’s unnecessary for anybody who owns the car outright, but it’s beneficial if you lease or own it. Driving the company car ensures you will need stop gap coverage. Additionally, driving on company time means you will have it. Without stop gap coverage, you may end up owing money to your lender or lessor if you sustain a total loss.

What Stop Gap Coverage Covers

Stop gap liability coverage insurance covers the costs associated with a total loss for drivers who lease or finance their vehicle. In other words, if you do not own your car outright. Likewise, if it’s totaled in an accident, your insurance policy will typically offer a payout for the value it’s assessed at. Sometimes, this value will be less than the total balance left on your contract. It essentially is true if you’re upside down on your car loan. In this case, you may end up indebted due to the accident, but stop-gap coverage prevents this by covering the outstanding sum that may be left.

When You Need Stop Gap Coverage

When do you need stop gap coverage? It is not necessary for the lifetime of your loan or lease. Also, it’s best suited to a driver who bought their car with a small down payment. Then it is good if they opt for a long-term repayment period. These circumstances may lead to a payout that’s less than the balance of a loan or lease. Likewise, it may be different. You may not need to stop gap coverage. Likewise, this is true if you’re toward the end of your contract term and owe less than the value of the vehicle.

How Much Stop Gap Coverage Costs

Many people wonder how much stop gap insurance costs and the answer varies depending on the insurer. It costs less than the expense you’ll face if you owe a balance to your leasing company after an accident. 

About World Wide Specialty Programs

For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.