Learn how gap insurance protects you financially by covering the difference between your car's value and what you owe in case of total loss. Discover when to buy it.

If you've ever spent a Saturday afternoon in a car dealer's financing office, you've probably heard of gap insurance. But maybe you didn't fully know what it meant. If so, you're not alone. In simple ...

Imagine this happens: Your car or truck is suddenly totaled or stolen. Gap insurance is there to help to bridge the difference (the “gap”) between what you presently owe on a loan or lease and what ...

Gap insurance covers the difference between your car loan balance and what your car insurance company pays if your vehicle is totaled or stolen. If your vehicle is paid in full, you don’t need gap ...

As it pertains to cars, gap insurance covers the difference between what you owe on your car loan and the actual cash value of your car if it’s totaled in a crash. That “gap” can amount to quite a bit ...

Gap insurance acts as a financial safety net for drivers who finance or lease a vehicle, covering the difference between the car’s actual cash value and the remaining loan or lease balance if the car ...

As soon as you drive a new car off the showroom forecourt, it is no longer new, and its value drops significantly. Say you have an accident on the way home and the vehicle is written-off, or it is ...

Many people will only hear about GAP insurance when they buy a new vehicle at a dealership, as a salesperson will often try to sell them a policy. However, you are under no obligation to buy it. That ...

Gap insurance can come to the rescue if your vehicle is totaled or stolen and you owe more on it than what it's worth. Many, or all, of the products featured on this page are from our advertising ...

Gap insurance is optional car insurance endorsement that covers the “gap” between the amount owed on a vehicle and its actual cash value (ACV) in the event it is totaled, stolen or rendered a total ...

A car's value can depreciate as much as 20% in its first year. If you're leasing or financing your vehicle, you could quickly find yourself in a situation where the balance on your auto loan is more ...

Scott Nyerges is a former senior editor and content strategist at U.S. News & World Report, where he led coverage of car insurance and other personal insurance lines. He's also served as a managing ...