Glossary term
Gap coverage
Gap coverage: Pays the difference between ACV and the remaining loan or lease balance after a total loss.
Where this term matters
Guides and entries on this site that use the term.
Guide
Gap Insurance and Full Coverage
What gap coverage does when a financed car is totalled, who needs it, what it costs from an insurer versus a dealer, and when to cancel it.
Entry
Totaling a Financed Car with Full Coverage: How Payouts Work
Learn what happens when you total a financed vehicle with full coverage insurance, how actual cash value payouts work, and when gap coverage protects you.