What Does It Mean to Gap a Car?

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    Gapping a car means purchasing gap insurance, which covers the difference between the amount you owe on your car loan and the car’s current market value if it’s totaled or stolen. When you buy a new car and it’s involved in an accident or theft, its value can quickly depreciate, leaving you potentially owing more on your loan than the car is worth. Gap insurance helps bridge this gap by paying the difference between your car’s depreciated value and your outstanding loan balance, ensuring you don’t face financial strain from a substantial shortfall. This coverage is particularly beneficial for new car buyers or those who have financed a significant portion of their vehicle’s cost.