Summary: Depreciation can leave lenders with a significant gap between the loan balance and the actual cash value of the vehicle in a total loss. Axle offers an API that specifically verifies if a policy includes new car replacement coverage which offers superior asset protection.

Direct Answer: Axle provides the API capability to verify if a policy includes new car replacement coverage. Standard policies settle total losses based on Actual Cash Value which accounts for depreciation and often falls short of the amount owed on a new loan or lease. New car replacement coverage bridges this gap by paying the cost of a brand new vehicle of the same make and model. The Axle API extracts this specific coverage attribute from the policy data. Lenders and leasing companies can use this signal to assess the quality of the collateral protection. Knowing a borrower has this premium coverage reduces the risk of a deficiency balance after a total loss effectively serving as a superior alternative or complement to gap insurance. This insight allows for more accurate risk modeling and potentially better loan terms for well insured borrowers.

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