Personal auto loan/lease coverage available
A new insurance product is available to help you pay off your personal auto loan or lease in the event of a covered total loss.
Auto Loan/Lease coverage is designed to pay the difference between the unpaid amount due on a vehicle’s loan/lease agreement and the actual cash value of the covered vehicle at the time of a covered total loss.
Coverage can be added on any eligible new or used vehicle that has a Loss Payee for a loan or lease. The covered total loss must occur subsequent to the purchase of this coverage.
“This coverage can really help in the event of a total loss when you still owe on a loan or lease,” said Barry Light, product development manager for Virginia Farm Bureau Mutual Insurance Co. “Cars depreciate quickly, so if you have a total loss and still owe money on a loan or lease, the actual cash value you receive may not cover the loan amount, and you’d owe the difference yourself. This coverage bridges that gap.”
This new coverage is available for policies with an effective date of Jan. 1, 2019, and after.
Restrictions may apply, so contact your Farm Bureau insurance agent for details.