GAP Insurance

Imagine your car is totaled, and the value your insurance company has placed on your vehicle is less than what you owe on it. How will you cover the gap? GAP Insurance relieves the burden of stress associated with paying off your vehicle after the total loss of your car or truck.

What is GAP Insurance?

Gap Insurance refers to the amount that you could potentially owe if your car is totaled and the amount of your insurance settlement results in an amount that is less than the amount you currently owe on your vehicle. Most people don’t actually realize that they will be responsible for these charges in the event that their vehicle is totaled.

• Total Owed on Loan or Lease: $15,000
• Appraisal from Insurance Company: $11,000
• Deductible: $1,000
• Insurance Settlement: $10,000
• Total Amount Owed on Loan or Lease: $15,000
• Insurance Settlement: $10,000
• The GAP: $5,000