GAP Insurance

Also known as: guaranteed asset protection

GAP Insurance (Guaranteed Asset Protection) covers the difference between what your auto insurance pays for a totaled vehicle and what you still owe on the loan or lease. It matters most when the vehicle has depreciated faster than the loan balance has been paid down.

Related terms

Actual Cash Value (ACV)

Actual Cash Value is the dollar amount your insurance company is required to pay you for a totaled vehicle. ACV represents the price you would pay to buy a comparable used vehicle of the same make, model, year, mileage, and condition in your local market — not the vehicle's original price, replacement cost, or what you still owe on a loan.

Leased Vehicle Total Loss

When a leased vehicle is totaled, the settlement goes to the leasing company (the titled owner), not to you. You may still owe the difference between the insurance payout and the lease payoff unless you have GAP coverage.

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Need help with a real total-loss claim?

Your consultation and offer review are free. If we agree to be your appraiser, our service is $199 for the appraisal research plus up to 2 hours of appointed-appraiser work at $149/hour.

Free appraisal consultation — and you pay nothing unless we get you at least $1,000 more. Our average is $3,260 more.No upfront payment — we pre-authorize your card only after reviewing your consultation and agreeing to take the engagement.

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The minimum guarantee is a full service-fee waiver when an accepted engagement does not deliver the minimum additional value over the insurer's initial offer. Results vary. See terms.