After your Comprehensive coverage or your Collision coverage has paid you the actual cash value for your vehicle, less your deductible, your Loan/Lease Payoff coverage will pay the difference between the actual cash value and any additional amount you owe under the terms of your vehicle lease or loan (excepting fees and charges). However, the payment made under this coverage may not exceed 25 percent of the actual cash value.



By the way, the same concerns the search of auto insurance. It is really good if you manage to get hold of cheap auto insurance with the lowest insurance rates. However, if the coverage of such insurance plan is too poor you will turn out paying for nothing and in the result will have to cover all financial expenses in case of a car accident on your own.

As you are choosing appropriate car loan insurance you need to check out such details as auto loan insurance coverage. The thing is that if you are motivated by low insurance rates only when you choose some appropriate insurance plan you can lose in coverage. That is why it is necessary to check out both.