What does gap stand for in insurance?
Gap insurance stands for Guaranteed Asset Protection insurance. It is an optional, add-on coverage that can help certain drivers cover the gap between the financed amount owed on their car and their car's actual cash value (ACV), in the event of a covered incident where their car is declared a total loss.
Is Gap the same as full coverage?
Gap insurance is needed even if you have full coverage because full coverage does not cover the difference between what you owe on a loan/lease and the car's actual cash value, like gap insurance does.
What is the most gap insurance will pay?
The most gap insurance will pay is the full amount left on your loan or lease balance. The exact amount gap insurance will pay depends on your vehicle's actual cash value, the remaining amount on your loan or lease, and your insurance company.
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