What is GAP coverage?

Gap coverage, also known as “guaranteed auto protection” or “GAP insurance,” is a type of insurance coverage that helps bridge the gap between the actual cash value (ACV) of a vehicle and the amount owed on a car loan or lease. Gap coverage provides financial protection and peace of mind for vehicle owners in the event of a total loss, ensuring that they are not left responsible for paying off a loan or lease on a vehicle that is no longer drivable.