Gap Insurance

What Is It?

Gap insurance bridges the monetary "gap" between a leases or financed vehicle's depreciated cash value and its outstanding loan balance when it's totaled or stolen.

In the event of a total loss, the insurance company cuts you a check based on the vehicle's depreciated cash value at the time of the incident and Not your outstanding loan balance.

The Bottom Line

It's simple math. A vehicle's value decrease significantly after it's driven off the lot, and most vehicles proceed lose up to 15% of their original value each year after purchase. Without Gap insurance you could be on the hook for thousands of dollars in order to close out a loan and all for a totaled vehicle that no longer even exist.