This optional coverage protects the dollar amount between what you still owe on an auto loan or lease and what you would actually collect from your auto policy if your car is totaled.

Why should I add this coverage to my auto policy?
New cars today are expensive. They also depreciate rapidly. After an accident, traditional policies pay based on a car’s actual cash value - the original purchase price minus depreciation. The actual cash value of most new cars drops 10 percent to 20 percent in the first year. Which means that it’s possible for the unpaid balance of a loan or lease to exceed the actual cash value of the car. If the car is totaled in an accident after only 12 months, the insurance proceeds might not be enough to pay off the loan or lease.

Auto loan/lease coverage fills this potential gap. It pays for the difference between the actual cash value of the car and any remaining payments on the loan or lease.

Do all cars qualify for loan/lease coverage?
Automobiles, pickups and vans that carry both collision and other than collision insurance coverage qualify, as long as coverage is added within 30 days of leasing or financing the new vehicle.

Can coverage be renewed each year?
Yes, as long as the loan or lease is in force. However, once coverage has been discontinued, it cannot be added back to your policy.

How much does auto loan/lease coverage cost?
The premium will vary depending on the cost of the new car.

How can I find out more?
Simply contact your agent. Ask them to explain the details and prepare a quote for this convenient, valuable insurance protection.

Peace of mind. Knowing that you’re protected, that your family, your home and your cars are properly insured, and that you can sleep easy at night.

With Penn National Insurance and your independent agent, you get outstanding value and superior local, personal service. And if you have a claim, we’ll be there for you. We promise to handle your claim promptly, fairly and courteously.

Peace of mind. You deserve it. Penn National Insurance and your local independent agent provide it.