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.Â