gap insurance (FS-PM)

Gap insurance is a new type of insurance, offered in the vehicle leasing area, which closes any amortization gaps that may occur. More specifically, this would be the difference between the replacement value and the recovery value of the leasing object (underinsurance for total loss or theft). The benefit from the gap insurance is valid for leasing contracts, based on normal market interest and durations, and is normally contractually agreed as supplementary coverage for comprehensive or partially comprehensive auto insurance.