Types of Car Liability Insurance: Part II
There are so many types of Automobile Liability Insurance that it’s easy to get confused. Here’s a breakdown of some more of the most common kinds.
- Loss of Use Coverage provides money for rental expenses associated with the repair of an insured vehicle due to a covered loss. This is also called rental coverage.
- Loan/Lease Payoff Coverage was created in the 1980's in response to the escalating price of cars, longer-term auto loans and the rising popularity of leasing in order to provide protection to consumers. Loan/Lease Payoff Coverage is also called GAP Coverage or GAP Insurance.
- Car Towing Insurance provides roadside assistance, usually in the form of a tow, for drivers who run out of gas, or have some kind of mechanical failure. It has nothing to do with reimbursement for costs incurred when the policyholder’s car is towed due to some infraction of the law.
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