Glossary
GAP Insurance
Guaranteed Asset Protection — pays the difference between what you owe and your car's value if it's totaled.
GAP insurance is essential if you put little down on a new car or have a long loan term. Without it, an insurance payout for a totaled car may not cover your remaining loan balance. Buy GAP from an outside lender or insurance company — dealer F&I markups are typically 200-400%.
Related terms