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Coverage Explained blog
100/300/100 vs 250/500/100: what the extra limits buyHow 250/500/100 compares with 100/300/100 on injury claims, multiple victims, property damage, price and umbrella rules, and how to decide for yourself.Adding an umbrella policy to your auto bundle: what it requiresWhat an umbrella insurer requires of your auto policy first, how package pricing compares with a standalone umbrella, and how teen drivers affect eligibility.Bankruptcy and car accident judgments: what a discharge can eraseMost ordinary crash judgments can be discharged in bankruptcy; injury caused by intoxicated driving cannot. What survives, the license, and how victims collect.Can a minor own a car or sign an insurance contract?Why a minor's contracts are shaky, what DMVs ask of parents, who becomes the named insured, and where liability lands when a teen's name is on the title.Can passengers and family members claim on your liability coverage?Passengers and relatives you injure can usually claim on your liability coverage, but guest statutes and household exclusions can block them in some states.Carpools and vanpools: liability, shared costs and insuranceSharing gas money rarely makes a carpool a for-hire use, but profit, public offers and app terms can. How riders and vanpools are covered, and what to ask.Choosing liability limits for five different householdsFive fictional households, one method: what a judgment could reach, which limit tier fits, and when an umbrella policy is the cheaper way to add protection.Excess judgments: when a verdict is larger than your policy limitWho owes the part of a verdict above your liability limit, how a plaintiff collects it, and when the insurer that refused a fair offer can be made to pay it.Excess letters and time-limit demands: what to do as the insuredAn insurer's excess letter or a lawyer's deadline to pay your policy limit puts your own money at risk. What each document means and how to protect yourself.Financial responsibility vs mandatory insurance: New HampshireNew Hampshire is the one state with no law requiring drivers to buy auto insurance. What its financial responsibility system does instead, and what it means.Giving up your car: what car share, rentals and non-owner cover costWhat happens to your liability exposure, your insurance history and your costs when you replace a car with car sharing, rentals and borrowed cars.The Graves Amendment: why rental and leasing firms escape liabilityA 2005 federal law bars suits against rental and leasing firms over a customer's crash unless the firm was itself negligent. Who pays instead.How a liability claim unfolds after you cause a crashOne fictional at-fault crash followed from first call to closed file, from the driver's side: what liability pays, who decides fault, and what a release ends.How insurers split limited coverage among several injured claimantsWith 50/100 limits and four people hurt, the money runs short. How per-person caps, first-come and pro rata rules, interpleader and good faith decideCan they take your savings? How accident judgments are collectedWhat a creditor can and cannot reach after a judgment above your coverage: wages, bank accounts, homestead, retirement funds, license suspension and bankruptcy.How a state raising its minimum limits changes your policyWhen a state raises its minimum liability limits, policies move to the new floor at renewal. What changes, what it costs and how to check your state's number.How to prioritize coverage when your insurance budget is fixedA spending order for a fixed monthly insurance budget: what to buy first, where a higher deductible helps, what to cut, and which risks you accept by doing so.Why doubling liability limits does not double the premiumInsurers price each liability layer by how often claims reach it, so higher limits cost far less than the protection they add. The math, with an example.The judgment-proof myth: what cheap limits expose after a crashHaving little money does not make you immune to a judgment above your policy limit. Here is how excess judgments are collected and what the law protects.Does your liability coverage extend to a trailer or towed load?A standard auto policy treats a trailer you own as a covered auto for liability, but the trailer, its cargo and anything you haul are mostly not covered.Liability when you hit a pedestrian, cyclist or scooter riderYour bodily injury liability pays a hurt pedestrian or rider if you are at fault, but shared fault, the victim's own coverage and liens change the result.Multiple claimants, one policy limit: interpleader and pro rata splitsWhen injuries outrun a per-accident limit, courts and insurers use interpleader and proportional splits. A 25/50 worked example, plus the driver's exposure.Lending your car: owner liability and negligent entrustmentLending your car can expose you three ways: your policy covering the borrower, a state owner-liability law, and your own negligence in handing over the keys.Package and grocery delivery apps and your car insuranceAmazon Flex, Instacart and Walmart Spark handle insurance differently. What each says it covers, how vans and bulky loads change the risk, and how to check.Protecting retirement savings from an auto liability judgmentHow an at-fault crash can reach a retiree's savings, what the law shields, and how higher liability limits, an umbrella and UM/UIM fit together.Punitive damages and car insurance: what policies will payWhether your auto policy pays a jury's punishment award depends on the policy wording and your state's public policy. Where the rules split and what to ask.Snowbirds: insuring a car in two statesWhere a car is kept most of the year sets its policy state. How garaging, registration, no-fault rules and time-in-state limits apply to part-year residents.Starting a one-person delivery business: when you need commercial autoA courier who contracts directly with businesses is outside both the app system and a personal policy. What commercial auto, cargo and federal filings involve.Sudden medical emergency at the wheel: fault, coverage and your licenseIf a seizure, low blood sugar or heart attack causes a crash, fault turns on whether it was foreseeable. How coverage responds and what happens to your license.Supplementary payments: extras liability pays beyond the limitYour liability limit is not the whole bill. Defense costs, bail bonds, appeal bonds, post-judgment interest and trial lost wages sit on top, until they stop.Surety bonds, cash deposits and self-insurance instead of a policySome states let a driver meet the financial responsibility rule with a bond, a deposit or a self-insurance certificate. How each works, and what it leaves out.When a teen drives a friend's car, whose insurance pays?The owner's policy usually pays first and the teen's family policy sits behind it as excess, but regular use, no permission or an exclusion can change that.The price of liability limits: how much each step up really costsRaising liability limits costs far less than the extra protection suggests. A filed North Carolina factor table shows the curve, with a worked example.Volunteer drivers and meal delivery for nonprofits: who is coveredDriving your own car for a food bank or meal program: your policy pays first, the charity's coverage sits behind it, and federal law does not shield a driver.What happens when damages exceed your liability limitsWhen an injury claim passes your limit, the insurer stops paying there. Who defends you, who owes the balance, and when an umbrella or bad faith claim applies.When a thief crashes your stolen car: are you liable?Owners are generally not liable for a thief's driving, but key statutes and negligence claims can change that. What your policy does and what to do.Refused settlements and excess judgments: the insurer's duty to settleA policy-limits demand arrives, the insurer says no, and a verdict tops the limit. How the duty to settle works, who bears the excess, and what claimants do.When your car hits a building: auto liability vs homeowners coverageWhich policy pays when a car hits a garage, fence or rented unit? Who owns the building decides it, and the exclusions, deductibles and limits differ for each.Why property damage limits fall short in today's crashesOne $10,000 or $25,000 property damage limit must cover every car, guardrail and fence in a crash. Modern repair arithmetic shows how fast it runs out.Fatal crashes and liability limits: wrongful death claims explainedWhen a crash you caused kills someone, one per-person limit usually covers every survivor's claim. How wrongful death claims work and what happens past it.Driving into Canada or Mexico: does your US policy cover a crash?A US policy usually follows you into Canada but not into Mexico, where liability needs a Mexican policy. What changes after a crash, and what to carry.Crashes with pedestrians and cyclists: coverage, fault and claimsHow insurance responds when a car hits a person on foot or on a bike: who pays medical bills, how shared fault works, and what changes in a hit-and-run.Add-on no-fault: PIP benefits without a limit on suingAdd-on states pay PIP regardless of fault yet leave your right to sue intact. How offsets, written waivers and health coverage fit together.Auto glass claim fraud: how repair-shop billing schemes workWhy windshield claims attract billing abuse, how assignments and inducements fed Florida's glass lawsuits, and what to check before you sign a shop's form.Auto vs health insurance deductibles: why they work so differentlyA car deductible comes off every claim, with no yearly total or out-of-pocket cap. A health deductible is a yearly threshold followed by coinsurance and a cap.Belongings stolen from your car: auto, homeowners or renters policy?A smashed window and a missing laptop involve two policies: auto pays for the glass; homeowners or renters may pay for the contents, within limits.Break-ins and vandalism: what auto and home policies each payA smashed window and a stolen laptop are two claims on two policies. Here is what each pays, how the deductibles stack, and what to document first.Buying a replacement car while your total loss is pendingWhen buying a new car before the settlement arrives is safe, how the newly acquired vehicle clause works, and how to avoid a coverage gap or negative equity.Cancellation and nonrenewal rules: notice periods and allowed reasonsWhether an insurer could cancel or not renew depends on your state's allowed reasons and notice clock. Four states compared, plus what to do in the first week.Carjacking and insurance: coverage for the car and injuriesWho pays after a carjacking: comprehensive for the vehicle, health insurance, MedPay, PIP or UM for injuries, and crime victim compensation for the gaps.Charging an EV at an apartment: liability and renters insuranceWho is responsible if a shared outlet or cord causes a fire or fall, what renters and auto policies cover, and what leases and right-to-charge laws can require.Claims when the driver was not listed on the policyA friend, a grown child or a roommate crashed your car. Permission, household membership, regular use and exclusions decide whether the policy pays.Collision or comprehensive? Twenty everyday losses sortedWhich physical-damage coverage handles deer, hail, hit-and-runs, rolled-away cars and 16 other common losses, with the deductible and fault label for each.Over-the-air updates and subscriptions in EVs: the insurance angleWhat happens to your coverage when a software update changes your EV, a paid feature locks or the maker collects driving data: recalls, repairs, value, privacy.Continuous insurance laws and cars you don't driveWhy a registered car can need insurance while it sits in a garage, how New York, Florida and California handle storage and non-use, and what lenders add.Hitting a deer or other animal: comprehensive or collision?Hitting an animal is usually a comprehensive claim; swerving into something else is usually collision. How deductibles, totals, police and renewals work.Driver-assist crashes: who pays when Autopilot-style features were onLane centering and adaptive cruise do not move fault off the driver. How your policy responds, where a maker can be liable, and how the car's data helps.EV fires and insurance: what the data show and how a fire claim worksEV fire rates are hard to pin down, but battery fires are harder to end. What comprehensive pays, who covers towing and storage, and where a garage fire goes.Can you exclude a teen driver from your car insurance?Excluding a teen can cut the premium, but if the teen crashes in your car the policy typically pays nothing. How exclusions work, state limits and alternatives.Florida's PIP and property damage mandate, and why BI is optionalFlorida requires $10,000 of PIP and $10,000 of property damage liability, not bodily injury. What that leaves out and what changes after a crash or DUI.Force-placed insurance: when your lender buys coverage for youA lender that cannot confirm your coverage may buy a policy that protects only the loan and bill you for it. What it covers, what it costs and how to end it.Golf carts, ATVs and e-bikes: where auto insurance endsWhy a personal auto policy stops at golf carts, ATVs and e-bikes, what a homeowners form picks up, and when a separate policy closes the gap.Who gets the claim check: you, the shop or your lenderWhy a car insurance claim payment may name two parties or go to a shop or lender, how to endorse and deposit it, and what to do when it is late.Lowering coverage midterm without creating a gapHow to cut coverage before renewal safely: request an endorsement, set the effective date, check lenders and state proof rules, and document the refund.How to read the auto policy contract, not just the declarations pageThe declarations list what you bought; the contract decides how it applies. How a policy is built, how to trace a question, and how to get the full text.How your coverages work together in a single crashA rear-end crash followed by a hit from an uninsured driver, traced by coverage: liability, collision, MedPay, uninsured motorist, rental and health insurance.Insuring a three-wheeled autocycle: the gray zone between car and bikeFederal law calls a Slingshot-style autocycle a motorcycle, states label it differently, and the label decides the policy form, helmet rule and coverages.Insuring an imported or gray-market vehicle: eligibility and valueAn import under the 25-year rule or from another market can be insured, but VIN, title and value need care. Federal basics, valuation and a buyer's checklist.MedPay or health insurance: who pays first after a crashMedPay pays crash medical bills regardless of fault, but your health plan, Medicare and Medicaid have their own rules about who goes first and who gets repaid.Medicare and car accident medical bills: who pays firstMedicare is secondary to no-fault and med-pay coverage, and may pay conditionally on fault claims, then be repaid from a settlement. The order and what to do.Modified cars and insurance: lift kits, tuning, wraps and wheelsWhat a standard policy pays for aftermarket parts, why undisclosed mods put a claim at risk, and how lifts, tunes, wraps and wheels change underwriting.Excluded drivers: what a named-driver exclusion does in a crashA driver you excluded by name crashes your car: the policy typically pays nothing, and you may be liable as owner. How exclusions work and where states differ.New Jersey PIP: the health-insurance-primary choiceNew Jersey's form asks how much PIP you want, whether your health plan pays first, and whether to keep your right to sue. What each choice changes in a claim.PIP benefits explained: medical bills, lost wages and servicesWhat personal injury protection pays bucket by bucket: medical care, lost income, replacement services, death and funeral costs, and how a limit runs out.Policy conditions that can sink a claim: notice, cooperation, proofAn insurer can deny a covered loss over what you did afterward. Which duties matter, when courts require proof of harm, and what to do if a denial cites one.Auto policy exclusions that catch drivers off guard at claim timeDelivery work, racing, intentional damage, breakdowns, regularly used cars: how common auto exclusions are worded, where they bite and what fills the gaps.Recycled, reconditioned and certified parts in insurance repairsWhat recycled, reconditioned, remanufactured and certified aftermarket parts are, what CAPA and NSF seals mean, and what rules apply when an estimate uses them.Rejecting uninsured motorist coverage in writing: when waivers failHow states let you decline UM coverage, what a valid signed rejection must contain, and what courts and statutes do when the form is missing or defective.Relay attacks and keyless theft: how it works and what is coveredHow relay and CAN-injection thieves take cars with no broken lock, what comprehensive pays, how insurers test a no-forced-entry claim, and what defenses help.Pothole and road debris damage: your policy or the cityCollision coverage usually pays for a pothole, but the deductible often eats the bill. When a claim against the road owner is realistic and what proof it needs.Road rage and intentional acts: what your auto policy will not payAuto liability policies exclude harm a driver causes on purpose. How courts judge intent, what the insurer still owes, and what the other driver can collect.Single-vehicle crashes: guardrails, poles and what to reportHit a pole, guardrail or ditch alone? Collision coverage fixes your car and liability pays for what you damaged. What to report and how rates are affected.Storing a car: seasonal use and comprehensive-only coverageHow to cut insurance on a stored motorcycle, convertible or spare car without breaking registration law, voiding a loan agreement or leaving it unprotected.Taking over a deceased spouse's car insuranceWhat happens to a policy when the named insured dies, how a surviving spouse becomes the policyholder, and what to do about the title, discounts and payments.Tire and wheel damage: when insurance pays and when it does notWorn or blown-out tires are not covered, slashed tires and stolen wheels usually are, and curb strikes fall to collision. How the cause decides the claim.Track days, racing and off-roading: what your policy excludesRacing is excluded almost everywhere, and newer wording reaches track days and driver training. What off-road driving changes and what track policies cover.A tree fell on your car: which policy pays?Your own comprehensive coverage normally pays for the car, whoever owned the tree. Homeowners, a neighbor or the city pay only in narrower cases.Underinsured motorist claims: offset vs excess and consent to settleHow UIM pays under offset and excess designs, why your own insurer must hear about a settlement before you sign, and how medical benefits and arbitration fit.Underinsured motorist coverage: difference-in-limits vs add-on statesThe same crash pays differently under a limits-to-limits or an excess UIM formula. Worked examples at $50,000, $100,000 and $300,000 limits.Uninsured motorist claims: consent to settle, arbitration and proofWhy a claim on your own policy feels adversarial, what you must prove, when you need your insurer's consent to settle, and how arbitration and deadlines work.Uninsured motorist property damage vs collision: which to useUMPD usually costs less at the claim when an uninsured driver hits your car but needs proof; collision pays regardless of who hit you, with your deductible.Car fire claims: causes, coverage and what investigators look forComprehensive pays for most car fires, and the insurer investigates because the cause decides the claim. How the cause is found and what a total loss pays.Hail, floods and hurricanes: how weather shows up in car premiumsWhy a comprehensive premium can rise on a car that was never damaged: how insurers price hail, flood and wind losses, spread them over years, and reinsure them.What auto insurance will not repair: wear and mechanical failureWhy a failed transmission or worn part is not a claim, where a crash, flood or theft changes that, and how service contracts and warranties fill the gap.Which legal entity actually insures you: reading your policy documentsThe brand on your app often is not the company on your policy. How to find the issuing insurer and why it matters for ratings, complaints and guaranty funds.Which coverages have no deductible, and which sometimes doLiability and uninsured motorist injury have no deductible; collision and comprehensive do. PIP, glass and uninsured property damage vary by state.Who UM coverage protects: passengers, pedestrians and cyclistsUM coverage follows some people and some cars. Who counts as an insured, which policy pays first for a passenger, and what the household exclusion does.Who pays your medical bills after a car accidentThe order in practice: PIP in no-fault states, MedPay, your health plan, then the at-fault driver's insurer, and who gets repaid out of a settlement.Who pays when a public EV charger damages your car or hurts someoneWhich policy responds when a public charger damages your EV, a cable trips a stranger or you tear out a connector, and how network terms limit your options.Why comprehensive coverage costs so much more in some placesNAIC data show comprehensive premiums vary fourfold between states. Theft, hail, animals, glass laws and territory lines explain it, and what drivers control.Why policy wording differs by company: ISO and proprietary formsWhere auto policy language comes from, how insurers file it with states, and the clauses (new cars, rental, repair pricing, suit deadlines) that diverge.Will my insurer cancel me if I drive for Uber or Lyft?Rideshare driving can get a personal auto policy cancelled, nonrenewed or a claim denied. What the exclusion says, how insurers find out, and what to ask.Body shops that waive your deductible: why it is a red flagA shop that offers to "eat" your deductible has to recover that money somewhere. How state laws differ, where the risk lands, and what to do instead.Building a deductible emergency fund so a high deductible is safeHow to size a car emergency fund from your deductible, where to keep it, how fast to build it, and when a lower deductible is the safer choice.Can you deduct car damage on your taxes? The casualty loss rulesFederal tax law rarely lets you deduct car damage. How the disaster-only rule, the $100 and 10% cuts and the insurance offset work, and what changed in 2026.Changing your deductible mid-policy: premium effects and claim timingMost insurers let you change a deductible mid-term, but the change applies from its effective date forward, never to a loss that already happened.Accident forgiveness and disappearing deductibles: are they worth it?Accident forgiveness waives a future surcharge; a disappearing deductible shrinks your cost at claim time. When each pays off and where to read the terms.Scratches, dings and scuffed bumpers: is a claim ever worth it?How to price cosmetic damage honestly, compare it with your deductible and the cost of a small claim, and spot the cases that need reporting anyway.Claims just above your deductible: the true cost of filingWhen repairs barely exceed your deductible, the payment is small and the surcharge, lost discounts and claim record can cost more. How to find the break-even.Contingent collision coverage and the rideshare deductibleHow Uber and Lyft's contingent collision and comprehensive coverage works, the $2,500 deductible, what lienholders see, and when it helps an older car.Hail damage claims: paintless dent repair, deductibles and totalsHow a hail claim is estimated, when paintless dent repair works, why a drivable car can still be totaled, and what taking the cash does to later claims.How insurers price deductible credits: the logic behind the discountA higher deductible cuts your premium by the share of expected claim dollars it removes. How that share is figured, why it varies, and why it flattens.How the deductible is applied to a repair claim, step by stepFollow a $4,800 estimate from first look to final invoice and see where the $1,000 deductible goes, who pays the shop, and why the total changes.One accident, two deductibles? How \"occurrence\" decides what you payHow auto policies count a loss for deductible purposes: one event versus two, multiple coverages, two cars on one policy, and how to describe a loss accurately.Paying your deductible when you cannot afford itA shop can hold your car until the deductible is paid. How the lien and storage clock work, cheaper ways to raise the cash, and why "we'll waive it" is a trap.Setting different collision and comprehensive deductibles on purposeWhy your comprehensive deductible need not match collision: claim size, premium, hail, deer and surcharges all argue for a split. Includes a worked example.Switching car insurance when your car is financed or leasedYou can change insurers on a financed or leased car, but the lender should see the new policy before the old one ends. Steps, force-placed risk and gap.Vandalism, parts theft and break-in damage: comprehensive claimsHow comprehensive pays for smashed windows, stolen wheels and attempted-theft damage, how the deductible applies, and a practical cut-off for filing.Very high deductibles ($2,500 to $5,000): who they suitA $2,500 to $5,000 deductible pays off for few drivers: those with a large premium, below-average claim risk and cash on hand. Here is the break-even test.When to drop collision and comprehensive on an older car: the mathA step-by-step test that sets collision and comprehensive premiums against what the car would actually pay out, with three worked examples at different values.Windshield replacement on a modern car: cameras, calibration and glassWhy a cracked windshield can cost four figures with a forward camera, what the repair order lists, and what zero-deductible glass laws cover.Adaptive equipment and mobility modifications: how coverage worksHand controls, lifts and wheelchair conversions are aftermarket to a standard policy. How custom equipment coverage, total-loss values and rentals handle them.Auditing your add-ons: which endorsements to keep, drop or addA method for pricing each endorsement on your policy, finding duplicates, and deciding at renewal which extras still earn their cost and which to drop.Car subscription services: what the bundled insurance really includesInsurance in a car subscription is usually the provider's policy, with limits and a damage share set by contract. How it differs from lease or personal cover.Dealer tire, paint and dent plans vs your auto policyWhat tire and wheel, paint and dent plans actually promise, where comprehensive and collision overlap, what financing adds, and how to cancel for a refund.Dealer gap vs insurer gap: refunds, cancellation and refinancingWhat a dealer's GAP waiver is, how it differs from gap on your policy, and how to get the unearned part back when you pay off, refinance or trade in the car.How a gap insurance claim works after a total lossGap pays only after your auto insurer settles. The order of events, the documents the administrator asks for, what it will not pay, and what to do if denied.Insuring a camper van or RV: where auto ends and RV coverage beginsA converted van sits between car and RV. How insurers classify it, what auto policies leave out, and what RV coverage adds, from vacation liability to rentals.Insuring a classic or collector car: agreed value and usage limitsHow collector policies fix a car's value in advance, what they ask in return on mileage, storage and a second car, and when a restored daily driver fits.Insuring a project car or kit build while it is under constructionMany insurers will cover an unfinished car, but a standard policy values it as it sits. Build valuation, parts and tools, kit titling and storage explained.Lease gap protection: what is built in and what you still oweA gap waiver in your lease can erase the shortfall after a total loss, but rarely everything. What it usually leaves with you, and how to read the clause.Leasing an EV: gap coverage and what happens if it is totaledA totaled leased EV is paid at market value to the lessor, not at what you owe. How the shortfall arises, what gap covers, and what to check in the lease.Little-known endorsements: key fobs, pet injury, trip interruptionSome policies add small benefits for lost keys, an injured pet or a breakdown far from home. What published forms pay, their limits, and when stand-alone wins.Loan and lease insurance requirements: what your lender can demandWhat a car loan or lease contract can require of your policy, from deductible caps to loss payee and proof, and where the lender's power stops.Mechanical breakdown insurance vs extended warranty: what each coversBreakdown insurance is a licensed insurance policy; an extended warranty is usually a service contract. How regulation, eligibility, claims and refunds differ.Better car replacement claims: what you actually get paidNew car and better car replacement usually pay cash, with limits. Eligibility windows, what counts as new, how they differ from gap and ACV, and claim steps.Occupational accident insurance for gig driversWhat occupational accident coverage pays a hurt rideshare or delivery driver, who gets it, what it costs, and how it differs from workers' comp and MedPay.Out of charge on the road: EV towing, roadside help and coverageMost EVs need a flatbed when they run flat. Whether your policy, a club or the maker pays depends on how each defines a breakdown and on its caps.Renting a car: do you need the counter's insurance?Your auto policy and credit card may already cover most of what the counter sells. How they overlap with the waiver, and the cases where the add-ons fill a gap.Renting a car to drive for rideshare or deliveryOrdinary rental contracts ban driving for hire. Weekly rideshare rentals allow it and bundle basic insurance, but the layers of coverage need a close read.Renting a moving truck or cargo van: whose insurance covers it?Your auto policy may cover a rented cargo van but often not a box truck. How liability, truck damage, your belongings and a towed car each get covered.Renting from Turo as a guest: protection plans and your policyWhat Turo's guest protection plans cover, why they are contracts rather than insurance, and how your auto policy and credit card fit in.New car replacement, better car and gap: endorsements comparedThree add-ons answer three different questions after a total loss. How new car replacement, better car replacement and loan/lease payoff differ by age and debt.Short-term car insurance and binders: when they make senseA binder bridges the days before a policy is issued, not a month of coverage. The real short-term options, early-cancellation costs, and how DMVs see gaps.Totaled classic or collector car: agreed value, stated value and ACVWhat a destroyed classic is paid under agreed value, stated value or ACV, where restoration cost fits, and what to do if you only have standard coverage.Totaled leased car: how the lessor, gap and payoff interactWhen a leased car is totaled, the insurer pays the lessor and you owe any shortfall unless the lease includes gap. How payoff, gap and paperwork fit together.What gap insurance does not pay: deductibles, fees, late paymentsGap covers the loan balance above what your insurer pays, minus a list of carve-outs: some deductibles, late fees, add-ons, over-limit balances and more.