GAP Insurance, also known as Guaranteed Asset Protection Insurance, covers the difference between the value you bought your car for, and the amount that your insurers pay out to you after a write-off.
This can be bought in full, on finance or on a lease.
A total loss occurs when the vehicle is in an accident or a theft.
The insurance pays out on the vehicle’s value at time of write off.
Gap Insurance gives you the difference between the value of your car when you purchased it and what the insurer paid you.