Insurance term
Gap Insurance
Optional coverage that pays the difference between what you owe on a car and its value if it is totaled. It is useful when you finance or lease a new vehicle, because its value drops faster than the loan balance. Without it, you would pay that difference out of pocket after a crash or theft.
Example
Gap insurance is valuable on a new, financed car that depreciates quickly.
Related coverage
Auto Insurance
Protect your vehicle with comprehensive auto insurance coverage at competitive rates.
Comparisons to help you decide
Ready to protect what matters?
Get a free, no-obligation quote. Our bilingual agents compare 30+ carriers to find you the best coverage at the best price.