What information typically needs to be gathered regarding both the amount owed and coverage amount in a gap contract?

In the context of a gap contract, it is essential to gather specific information about both the amount owed and the coverage amount to ensure that the insurance adequately protects the insured. The key components focused on in such contracts are directly tied to the financial aspects of the vehicle or asset involved; thus, determining the amount owed on the loan and the amount the insurance policy will cover is critical.

The amount owed refers to the outstanding balance on the vehicle financing, while the coverage amount is what the insurance will pay in the event of a total loss, ensuring that the insured does not face a financial shortfall. This information helps in providing the necessary protection against potential losses that could occur if a vehicle is totaled, particularly when the market value of the vehicle is less than the amount still owed on it.

Therefore, collecting this data is vital for evaluating the adequacy of coverage and ensuring that the insured is protected in a gap situation, making it the correct answer for this question. Other options, while they may be relevant in specific contexts, do not directly address the fundamental requirements of a gap contract.