Loan Payoff Insurance

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What is loan payoff insurance coverage?

A loan on a vehicle is a gamble, the owner is betting they will be able to pay off the loan over the life of the the vehicle. Loan payoff insurance coverage provides the policyholder with financial protection if the vehicle doesn’t survive the life of the loan. A vehicle loan typically lasts for five years if your vehicle doesn’t survive the length of the loan, the policyholder is able to file a claim with their insurance company. Loan payoff coverage is an insurance policy that can only be purchased if the policyholder has both comprehensive and collision insurance. Loan payoff insurance coverage helps protect the policyholder if the financed vehicle is a total loss. After the policyholder receives comprehensive and collision coverage, paid the deductible, the loan payoff insurance coverage would cover the remaining amount on the auto loan.