Think of GAP (Guaranteed Asset Protection) as a safety net for your car loan. It’s like insurance, but it protects you from owing money on your loan if your car is totaled or stolen.

Here’s how it works: If your car is a total loss, your primary insurance will pay you the current market value of your car. But, you might still owe more on your loan than what the car is worth. This is where GAP coverage comes in. It covers the difference between what you owe and what your insurance pays, up to $50,000.

Why Do You Need GAP Coverage?

Cars depreciate quickly. This means the value of your car goes down over time. But the amount you owe on your loan might stay the same or even go up. GAP coverage protects you from this potential financial burden.