Covers your termination liability under the lease contract if your vehicle is deemed a complete loss before the end of your lease term. Covers the difference between what you owe, and what the vehicle is worth at time of loss. This is typically associated with totaled or stolen vehicles. Lease contracts may or may not contain gap insurance and lessors may or may not make gap insurance coverage available. Also known as Gap Coverage or Gap Protection.

An insurance policy you purchase at the dealership, designed to protect people who are buried in their car. In other words, a Gap policy covers the amount you owe above what the vehicle is worth.

Insurance that pays the difference between the actual cash value of a vehicle and the amount still to be paid on the loan, Some gap policies may also cover the amount of the deductible.

If the car is stolen or destroyed, this type of insurance pays the difference between what you owe on the lease and what the car is worth.

You are still liable for the loan if a car is written-off. Normal insurance only pays for the value of the car at the time of an accident or theft, which may be less than the amount outstanding on the loan. Gap Insurance covers the 'gap' between what the insurance pays out and what remains of the loan. You can buy Gap Insurance as part of the agreement.

This is very important insurance to have if you finance a car. There is no need to buy Gap Insurance if you are leasing the car because most leases have Gap Insurance included in the contract. If you total a new car and you still owe $30,000 on it but your insurance company says the car is only worth $25,000, you would have to pay the additional $5,000. If you have Gap Insurance this $5,000 would be paid.

Insurance covering losses arising as a result of the amount payable by insurers in the event of a write-off being insufficient to clear the outstanding finance.

If your leased car is stolen or totaled, your insurance will pay for the damage or loss. It won't help you make payments still owed to the leasing company. Gap insurance makes up the shortfall, or gap, between the value of your car and the amount you still owe on your lease, including a possible penalty for early termination of the lease.

Gap insurance pays the difference between what you owe on your auto loan and your car's market value if it is totaled.

This insurance covers the termination liability under the lease contract if your vehicle is deemed a complete loss before the end of your lease term. It typically covers the difference between what you owe and what your insurance company will pay for the loss. This contract feature typically comes into play when a vehicle has been totaled or stolen. Lease contracts may or may not contain gap insurance.

An acronym for guaranteed auto protection insurance.

Gap is referred to the difference between market value of a vehicle and what is actually owned. Gap insurance covers the difference in the event of total loss.

A gap car insurance policy makes up the difference between what you owe on your car and what your insurance company would pay you for if there was a total loss. You usually have to decide at the time of purchase if you are going to buy gap insurance. Usually available from the finance company, dealership, or car manufacturer

Insurance coverage that pays to the lender the difference between what you owe on your auto loan and your car's actual cash value in the event of a theft or total loss.

This type of insurance if offered to customers that owe more their auto loan than what their vehicle is actually worth. Gap insurance covers the difference between what you owe and what the actual worth of your car is.

This is a very important kind of insurance that all cars should have. If your car gets stolen or if your car gets in a major accident, the difference in what you owe on the car and the worth of the car is the “gap”. Gap insurance pays for the gap.

In the event of a total loss, this optional auto insurance coverage pays the difference between the market value of your vehicle and the amount you still owe on it.

coverage that pays the difference between what you owe on a car and what your insurer pays if your car is totaled in an accident.

A type of insurance offered to auto lease and loan customers that owe more on a car than it's worth. Gap insurance pays the difference between what you owe and the actual cash value of a vehicle in the event the car is stolen or destroyed.

Pays off the lease balance if a leased vehicle is stolen or totaled Read more

A type of insurance offered to customers with leased vehicles. The policy pays the difference between what is owned and what the vehicle is worth if the car is stolen or destroyed.

A form of insurance offered to lesees that covers the difference between what the insurance company will pay for the car and the value due to the leasing company if the car is stolen of wrecked, sometimes included in lease terms.

Gap insurance covers you against additional losses not covered by your auto insurance in the case of an accident in which the vehicle is totaled. Most auto insurance will cover the actual cash value of the car at the time of its loss. Gap insurance covers the difference (gap) between the actual cash value of the vehicle and what is owed on the lease contract, including early termination fees. Gap insurance is most important in the early years of a lease when the difference between the value of the car and what is owed are greatest. Some manufacturers now include Gap insurance in their leases.

Optional coverage making up for the difference between the market value of a vehicle and it's outstanding payments.

If your leased car is stolen or totaled in an accident, there might be a gap between what your insurance company will pay you for the loss and the amount you now must pay to the leasing company. If you take out gap insurance (it is included in some lease contracts), this will cover you for this loss. For more information, check out the section on gap insurance in our article, Little Known But Important Insurance Issues.

Insurance which covers the difference between the replacement cost (paid by conventional insurance) and what is owed on the lease in case the car is stolen or totaled.

Optional insurance coverage that will pay the difference between what you owe and what the vehicle is worth in the event of vehicle loss. Coverage typically applies to lost/stolen vehicles as well as vehicles that are declared a total loss due to accident or wreck. Also known as Gap Coverage or Gap Protection.

If you are making lease or loan payments and you experience a total loss, there may be a difference (gap) between the market value of your vehicle and what you still owe on it. This optional coverage pays the difference.

The name given to a type of insurance coverage that covers the difference between the actual cash value of the leased vehicle and what is still owed on the lease contract. If a leased vehicle is destroyed in an accident or stolen, gap insurance coverage protects the lessee against additional losses due to “gaps “ between the insurance settlement and the lessee's financial obligations set out in the lease contract.

In the event of total loss of the vehicle, the insurance coverage pays only the fair market value of the car minus the deductible. Such coverage is normally not sufficient to cover the financial obligation of the lessee. GAP covers this difference between the financial obligation and the insurance settlement.

Gap Insurance is a special coverage for autos with a loan or lease. It is an optional coverage to cover the "gap" or difference at the time of loss between the Actual Cash Value of the vehicle and the loan or lease pay-off amount.

GAP Insurance- Guaranteed Asset Protection Insurance. If a car you are buying on finance is written off in an accident, your insurance may cover the cost of the car itself, but not the interest and ch (More)

An automobile insurance option, available in some states, that covers the difference between a car's actual cash value when it is stolen or wrecked and the amount the consumer owes the leasing or finance company. Mainly used for leased cars. (See Actual cash value )

Insurance that will cover the difference between the replacement cost paid by conventional insurance and what is owed on the lease in the case the car is totaled or stolen.