Facts to Know Before Going Choosing Your Motorhome Gap Insurance

1. Facts to Know Before Going Choosing Your Motorhome Gap Insurance Motorhome gap insurance is not a mandatory insurance policy for your motorhome. Instead, it is an optional coverage that will help you pay its finance, in case your vehicle is stolen. Or, if your vehicle is totalled and the amount you owe is much more than the motorhome’s depreciated worth. Understanding whymotorhome gap insurance is important can be difficult. Technically, motorhome gap insurance is also known as lease-gap or loan-gap coverage. This insurance policy is offered only to the leaseholder, or the original owner of the vehicle. Importance of Gap Insurance When you finance or lease a brand new motorhome, most lenders will expect you to buy a comprehensive or collision coverage policy. These insurance plans are required until your motorhome is paid off. The gap insurance policy works in conjunction with the comprehensive and collision coverage plans. If you raise a covered claim, both the comprehensive and collision coverage will help you repaying for the stolen or totalled vehicle. The amount repaid depends on the vehicle’s depreciated value. Who needs the gap insurance policy? The motorhome gap insurance plan is meant for people who are of pocket with an automobile loan. In simpler terms, people who are paying a loan that is much more than the worth of the vehicle, when it is totalled or stolen find the gap insurance plan handy. (The term “totalled” means replacement and repairs that are more than the worth of the motorhome). To decide whether the motorhome is declared as totalled or not depends on the insurer’s discretion and regional laws. When can you buy the gap insurance policy? The time you buy a motorhome gap insurance policy depends on many factors. Many a time, you will be able to buy the insurance policy after purchasing the vehicle. However, the model and year-of-make decide if you will be eligible for gap insurance or not. Here are two clauses most insurance service providers have: 1.The motorhome model should not be more than 2 or 3 years. 2.You should be the original owner of the vehicle.