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No, GAP insurance covers the "gap" between what oyu owe on the vehicle, and the vehicle's current market value. This is only for upside down loans. For example, you owe $20,000 on a car but it's only worth $15,000 and you total it, the insurance will only pay the $15,000 since they only go u to current market value. Without GAP, you would be stuck with the remaining $5,000 because once you sign that contract, that loan has to be paid no matter what. GAP would take care of the $5,000 and you would be left with $0 in the end, but you wouldn't owe money on a car you can no longer drive either.
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