In Alberta, Gap Insurance covers the difference between the actual cash value of a vehicle and the remaining balance on your auto loan or lease if your car is totaled or stolen. Standard auto insurance policies typically only pay the current market value of the car at the time of the loss, which can be significantly lower than what you owe due to depreciation. Gap Insurance bridges this gap, ensuring that you’re not left paying out of pocket for a vehicle you no longer have. This coverage is particularly beneficial for those who finance or lease their vehicles, as it provides financial protection against the potential loss that occurs if your car is written off before the loan or lease is fully paid off.