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Mind the Gap – Will you be left holding the bill after a car accident?

This one endorsement could make up the difference.

If you’ve ever traveled via London’s iconic “Tube” system, the phrase Mind the Gap is likely etched into your brain. The warning is repeated thousands of times a day, cautioning people about the space between the platform and the train and has become ingrained in popular culture.

Mind the Gap.

Mind the Gap.

It repeats, over and over. However, the Tube’s gap isn’t the only gap to be cautious of. Your auto insurance policy may have a gap that could leave you holding the bill.

Fill the Gap: Gap Insurance Endorsement for Auto Policies.

A standard Personal Auto Policy comes with insurance gaps. Collision and Comprehensive coverage only cover the market value of your vehicle.
That means you will get the depreciated value, not what you paid for the vehicle.
If you have taken out a loan to buy a new vehicle, it is likely the vehicle will depreciate faster than the loan repayment plan. This could result in you holding the bill for thousands of dollars.

For example:
You buy a new car for $48,000 and take out a loan for $40,000 to pay for it. One year later, the vehicle’s market value has depreciated to $20,000*. You are in an accident where damages to your car exceed the market value. Your car policy pays you the market value of $20,000. However, in the last year you have only paid your loan down $12,000 and you still owe $28,000 to the bank.

That $8,000 difference is your responsibility.

Unless you have an Insurance Gap Endorsement on your car’s insurance policy.

The Insurance Gap Endorsement pays the difference between the market value of the vehicle and the outstanding balance of the loan on the vehicle – in this case, $8,000.


  • Vehicle must have a loan balance.
    • If you have already paid off your vehicle loan, or didn’t not take out a loan at purchase, you would not be eligible for a Gap Insurance Endorsement on your policy.
    • If you are buying a new car without a loan, talk to your agent about a replacement coverage endorsement.
  • Vehicle must be new-ish
    • Many insurance carriers do not offer this endorsement on older vehicles. Check with you agent for specifics of your policy.

At Concklin Insurance Agency we take the phrase Mind the Gap to heart as one of our primary objectives as Insurance Professionals is to eliminate the insurance gap in your coverage, which means we must actively seek out the gap and fill it with appropriate coverage.

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*Numbers used are for demonstrative purposes only and do not reflect real depreciation.