What is GAP insurance?

This is insurance that pays the negative difference ("gap") between what you owe on a vehicle and what your insurance company will pay you if that vehicle becomes a total loss due to an accident or other mishap.  more

GAP insurance can provide valuable protection during the early years of your car's life if you have a loan or a lease. If a loss occurs, GAP insurance will pay the difference between the actual cash value of the vehicle and the current outstanding balance on your loan or lease. Gap Insurance protects your vehicle lease or loan. Sometimes it will also pay your regular insurance deductible. If your vehicle has been totaled by accident, theft, fire, flood, tornado, vandalism, or hurricanes your insurance company typically pays the actual cash value. That may be less than its actual retail value. It is often considerably less than the actual amount you still owe on your loan or the amount due for a lease payoff. The amount between your insurance deductible and the loss from this financial shortfall is the “gap” you can be left owing. When you purchase your policy online with CarInsurance.com, most of our carriers offer this coverage. It is labeled Loan/Lease Gap coverage. You can ...  more

A. In the event your vehicle becomes a total loss due to an accident or theft during the term of your lease period, GAP insurance covers the difference or gap between what your insurance company will pay and what you owe on the lease. At Bearcat, we include GAP insurance in every closed-end lease.  more

For many drivers, a standard auto insurance policy provides enough protection to cover the cost of repairs or replacement if their car is damaged or stolen. However, if you total your car and the car’s actual cash value is lower than the amount you owe on your loan balance or lease, that difference, or “gap,” is not covered by insurance. Your insurance company won’t pay out more than the car is worth (before it was damaged) -- so you will be responsible for paying that amount. Gap protection -- which is often referred to as insurance, though it is actually a debt cancellation agreement -- is designed to cover this difference between auto value and auto loan. Before you pay for gap protection, though, consider how a gap occurs and how you can close it.  more

Allstate Insurance Company Safe drivers should pay less. Visit our website for auto quotes. www.Allstate.  more

What does it do? Gap Insurance protects your vehicle's loan. It covers the difference between what you owe, compared to what the vehicle is worth in case it is totaled for ANY reason, and it also pays your regular insurance deductible. If your vehicle is totaled for any reason - theft, fire, accident, flood, tornado, vandalism, or hurricane - the value that your insurance company places on it may be a whole lot less that its actual retail value - and it is often considerably less than the actual amount you still owe on your loan. Between the amount of your insurance deductible and the loss from this financial shortfall or “gap,” you can be left owing literally thousands upon thousands of dollars. Drivers Select Automotive Loss Protection eliminates the financial gap between what your primary insurance company's settlement is and the actual loan payoff to your bank, credit union, or finance company up to $50,000 per incident!! Plus, in the process, Drivers Select Automotive Loss ...  more

GAP insurance provides coverage in the event the car is totaled. It pays for the gap between the amount due under the lease and the actual cash value of the car at the time of the accident. That way, you are protected if the insurance payout is less than what you still owe on the lease.  more

A. This insurance is designed to cover the difference between what an insurance company will pay in a claim and the balance due on your loan. This is used when your vehicle is totaled.  more

If your vehicle is stolen or written off in an accident, there may be a shortfall between the value of the vehicle and the outstanding finance amount. In these circumstances GAP insurance would cover the difference.

A. When you lease a vehicle, you pay your leasing fee on a monthly basis. But what happens to those payments if the vehicle is stolen or totaled in an accident? Legally, you are responsible for the value of the car. GAP (Guaranteed Auto Protection) insurance fills the gap between the amount you owe on the car and the actual value of the car.  more