Hollay Ghadery Last Updated On: June 27, 2023

Protect Yourself From the GAP

You drive your new or used car off the lot, it decreases in value. If you have a minimum down payment then it is probably worth less than what you owe the bank or finance company. This difference is the GAP and it’s what you owe should your car be totaled or stolen. Many finance companies will require it if the loan term is long or the down payment low.

GAP Insurance Coverage Protection for You

If you have less than 20% down on a  car or bought a car from a lot that finances you on the spot, you may have a need for a GAP insurance policy. You have full coverage on your car because it is financed, but the actual cash value of your vehicle may be far less than the amount you owe. In the event of a theft or total loss, the difference between what you owe and the settlement can leave you with no car and a sizable debt.  It is important to note that “full coverage” most often does NOT include GAP coverage.

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Get GAP Insurance Coverage to Enhance Your Insurance Protection

You can add a GAP insurance policy and truly make your protection full coverage. Car GAP insurance protects you in the event of loss or theft. Though will still pay the deductible for a loss, the GAP auto insurance policy insures that you will not be stuck with not only the loss of your vehicle but debt as well.

So what is covered by GAP coverage on cars, SUVs, Crossovers, or trucks? It is almost easier to understand a list of what is not. Engine failure or other repairable failures on a vehicle are not. It will not pay your deductible in the event that your vehicle is lost or stolen. It is not life insurance and will not cover death to the owner. It will cover theft or total loss of the vehicle for the difference of what is owed on the vehicle versus the actual cash value as determined by your auto insurance company.

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Costs, Refunds, Full Coverage, and How GAP Auto Coverage Works?

In general GAP coverage is available for between $20 and $40 per year with rates that depend upon the length of coverage as well as the vehicle’s value.

Refunds are generally not available. If a car is paid off before the term of the policy has expired, some states require that the unused premium be returned.

Full Coverage includes liability, comprehensive & Collision, medical and uninsured or under-insured motorist but does not protect you from the GAP. To truly fully cover vehicle theft and loss it is recommended to get gap insurance quotes if you have a loan term exceeding 48 months or have made a small down payment.

ConsumerCoverage has insurers waiting to give GAP insurance quotes. If you are not offered this coverage at the time of sale, check with your auto insurer or contact us here and we will find you the best deal on GAP insurance coverage.


If any of the following things apply to you:

• Made a small or no down payment on a new car
• Loan term longer than 48 months
• High mileage driver
• Lease your car
• Vehicle or make of vehicle has a high depreciation rate

Typically GAP coverage insurance should be purchased at the time that the car is bought since the GAP exists almost immediately. It is generally available on a new car up to three years after purchase as long as you are the original owner.


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