WHAT IS GAP INSURANCE

Guaranteed Asset Protection (GAP) insurance provides critical financial protection for vehicle owners, especially those with financed or leased vehicles. In the unfortunate event of a total loss—whether through theft or severe damage—GAP insurance covers the difference between the vehicle’s actual cash value, as determined by the insurer, and the remaining balance on the loan or lease.

This safeguard is particularly beneficial as vehicles typically depreciate faster than the loan balance decreases, leaving owners vulnerable to significant out-of-pocket expenses. By ensuring that the outstanding loan or lease amount is fully paid off, GAP insurance alleviates the financial burden, prevents negative equity scenarios, and provides peace of mind, allowing owners to focus on recovery and replacement rather than financial strain.