Gap Insurance
Gap Insurance Gap insurance is a specialized auto coverage that protects drivers from financial headaches when their car gets totaled or stolen. It covers the "gap" between what your primary insurance pays and what you still owe on your auto loan or lease. This often-overlooked policy can be a lifesaver when depreciation hits harder than expected. Understanding gap insurance matters because depreciation can put you underwater on your loan faster than you think. If you're juggling car payments while building long-term financial stability through strategies like an ETF investing guide , gap coverage prevents a totaled car from derailing your progress. It’s practical armor for your wallet. What is Gap Insurance Gap insurance, formally called Guaranteed Asset Protection insurance, kicks in when your vehicle is declared a total loss. Standard auto insurance only covers the car’s current market value, which is often thousands less than your outstanding loan balance. This ...