Gap insurance helps cover negative equity if your vehicle gets totaled.
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Gap car insurance, also called guaranteed asset protection, is optional coverage that pays the difference between your vehicle’s depreciated value and what you owe on your loan or lease if it’s totaled or stolen,Without this policy, you’d cover the gap. Our platform lists top companies so you can choose coverage within your budget.
Covers remaining balance if your car’s value is less than the loan.
Pays off your lease if the car is a total loss.
Protects you when your loan is higher than your vehicle’s actual cash value after depreciation.
Applies to theft, accidents, hail, and other total loss situations too.
Ensures your loan is completely paid off after a loss.
Often mandated on loans.
Adds coverage without overspending.
Keeps you from owing after your car is totaled.
Gap insurance pays the difference between the value of your vehicle and the remaining loan or lease balance after it’s totaled or stolen, while collision coverage pays for repairs to your car from covered accidents and collisions.
Gap insurance is generally intended for newer vehicles or when you owe more than the car’s value. For a used car with a small loan or if you paid it off, gap coverage might not be needed; assess your loan and value.
Many lease agreements require gap insurance because you do not own the vehicle. If your leased car is totaled or stolen, gap coverage pays the difference between what insurer pays and the amount owed.
Yes. If you pay off your loan, sell your car, or your vehicle’s value exceeds the loan balance, you can remove gap coverage and contact your insurer.
