What is gap insurance?

Answer 1

GAP insurance is coverage that covers the difference between the value of the vehicle at the time of the accident and the amount that is owed on the loan at the time of the accident. GAP insurance can be purchased from the finance company or from the persons insurance company. Usually it is much cheaper to get it from the insurance company.

Answer 2

Gap Insurance is coverage you purchase that insures the difference between what you owe on a vehicle and the insurance company's listed worth. It is generally recommended for owners of new cars because they depreciate much more quickly than older models.