What is GAP coverage?
You've probably heard that your car depreciates in value as soon as you drive it off the lot. Well, what if a week after you drive your brand new car off the lot you get into a wreck and total your car? You could be left holding the bill for the difference in the depreciated value of the car and the money you still owe on your auto loan. That is where GAP coverage will fill the gap between the depreciated value of the vehicle and the amount you still owe on the loan.
Sometimes GAP coverage is included in your loan or lease agreement. It is a fairly inexpensive additional coverage that could wind up saving you a couple thousand dollars, so it is worth checking into!