WHAT IS GAP?
When your vehicle is stolen or damaged beyond repair, GAP cancels your debt! If you're making payments on a vehicle that's stolen or damaged beyond repair, auto insurance alone may not pay everything you owe. Insurance typically pays the vehicle's actual cash value rather than the amount remaining on your loan or lease, which could leave a financial "gap" of thousands of dollars.
GAP coverage gives you peace of mind. If your insurance company determines that your vehicle is a total loss, GAP covers any remaining balance (up to $50,000) on your loan or lease after the payment from your insurance company. Your deductible (up to $1,000) may be included in this balance. (Deductible benefit may vary by state.)
GAP pays up to $50,000 of the balance you owe on your vehicle when it is deemed a total loss by your insurance company.