Written by Deborah Graves, OOIDA Truck Insurance Department
You asked, and the agents at the Owner-Operator Independent Drivers Association (OOIDA), the leading experts in commercial truck insurance, are here to provide the answers.
Question: What is “gap” insurance and do I need it?
Answer: Let’s take a look at your equipment in order to provide the answer.
Most physical damage insurance policies will pay you the actual cash value of your equipment. Or, in other words, your policy will only pay what it will cost to replace the equipment on the day you experience the loss.
The truck market has been very high in recent years, forcing truck prices higher. If you purchased your equipment when prices were higher, you may find yourself owing more on your loan than the current market value of your truck. We are starting to see a turn in the truck market, and it can move on a daily basis.
If you bought your truck within the past few years, you need to talk with your agent about gap insurance.
OOIDA can provide a gap insurance policy that you purchase along with your physical damage coverage. If you have a total loss on your equipment because of a collision, the gap coverage will pay off the loan if you find yourself owing more than what your equipment is determined to be worth. Not only will it pay the difference in value, but it will also pay your physical damage deductible up to $1,000. This ends up a win-win for you.
We are here to help you succeed. So don’t find yourself upside down on a loan. Call one of OOIDA’s expert insurance agents today to discuss your coverage.
You can reach an OOIDA truck insurance agent Monday through Friday, from 7:30 a.m. to 5:30 p.m. CST, at 800-715- 9369.
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