Is Gap the same as full coverage?
Gap insurance does not cover theft. It only pays when your vehicle is totaled and you owe money on the loan. However, comprehensive insurance does cover theft, and lenders require comprehensive coverage on cars with auto loans.
What is the difference between full coverage and gap?
If the car is totaled in an accident or stolen, standard car insurance will only pay you the current value, so you'll lose money paying back the original loan or lease. Gap insurance covers this “gap” between the depreciated value of the car and the amount owed on the loan.
What does gap stand for in insurance?
Gap insurance stands for Guaranteed Asset Protection insurance. It is an optional, add-on coverage that can help certain drivers cover the “gap” between the financed amount owed on their car and their car's actual cash value (ACV), in the event of a covered incident where their car is declared a total loss.
Is Gap the same as warranty?
GAP (Guaranteed Asset Protection) insurance is an additional coverage option that bridges the “gap” between what you owe remaining on your car loan and your collision coverage pay out. An extended warranty protects your car when something other than an accident necessitates auto repairs.