Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 22, 2020

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Things to Remember...

  • Finding a company with GAP insurance coverage is not difficult, as most insurance providers offer this option
  • GAP insurance will pay for the difference between the actual cash value of the car and the financed amount
  • To find the best deal for GAP insurance, as well as other coverage, shop around using an online comparison site

GAP insurance (Guaranteed Asset Protection) is particularly useful for individuals who own newer cars that are financed or leased.

GAP insurance pays by filling in the GAP between the cash value of the car and the amount that is financed to ensure that the owner is not making payments on a car they no longer can drive.

GAP insurance was created in the early 1980s when leasing of vehicles became popular.

Many people found themselves subject to “upside down” loans when they had totaled or damaged their vehicles due to an accident or unforeseen incident. Auto GAP insurance was needed to pay the GAP between the amount owed on the car and the car’s cash value.

Our FREE car insurance tool is available to help you compare quotes from several companies NOW!

Finding a Company That Offers GAP Insurance

Most major auto insurance companies offer GAP insurance.

When shopping for your car insurance policy, check on adding a GAP insurance policy to your coverage.

GAP insurance is a policy that may be added to full coverage insurance. Full coverage insurance is really two policies: Collision coverage and Comprehensive coverage.

– Collision Coverage

Collision coverage is the coverage that makes sure your car is repaired, and if you are at fault in an accident, the other driver’s car is repaired, in the event of a collision.

Collision coverage will also cover your car in cases where you drive into a tree, an embankment or another stationary object.

– Comprehensive Coverage

Comprehensive coverage is the part of full coverage insurance that will pay to have your car repaired or replaced in the event of any unforeseen circumstance other than a collision.

For example, if your car is victimized by vandals, comprehensive coverage will pay to have your car repaired.

Comprehensive coverage will also cover damage to your car in the event you have a run-in with an animal or if your car is destroyed by a natural disaster.

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

GAP Coverage

If your car is destroyed in an accident, or a natural disaster or any other type of incident, GAP coverage pays the amount (minus the deductible) that collision or comprehensive does not cover.

GAP insurance will essentially pay off the car loan minus the deductible and any other applicable coverage.

In order to obtain GAP insurance coverage, you need to have comprehensive and collision coverage in place.

After all, there needs to be insurance coverage that provides payment for the basic incident, which would be theft or an accident, in order for there to be a “gap.”

Finding GAP Coverage

You can shop around and compare various auto insurance companies’ GAP insurance policies and rates with an online comparison site.

These sites are easy to use and provide an invaluable service for insurance consumers who are shopping around for different companies and policies.

Online comparison sites are free to use and provide free car insurance quotes with just a few clicks of the mouse.

There is no reason to avoid shopping around and comparing auto insurance companies and rates.

To use the online auto insurance comparison sites, just open the site in a browser and enter your ZIP code. A list of insurance providers in your area is returned to you.

From there, you can select the auto insurance companies you want to compare.

The comparison site will return free auto insurance quotes from the companies and policies you specify.

Our FREE auto insurance comparison tool can give you quotes when you enter your ZIP code below!

References:

  1. http://www.nolo.com/legal-encyclopedia/gap-insurance-car-do-you-30132.html
  2. https://www.libertymutual.com/auto/car-insurance-coverage/collision-insurance
  3. https://www.allstate.com/tools-and-resources/car-insurance/what-is-comprehensive-auto-insurance.aspx
  4. http://www.iii.org/article/what-gap-insurance
  5. https://www.esurance.com/info/car/how-to-compare-car-insurance-policies