Gap protection insurance is ideal for individuals who have financed or leased a vehicle and owe more on their car loan than the vehicle’s current market value. This scenario often arises when driving off the dealership lot, as new cars depreciate rapidly. If you were to total your car, standard insurance might only cover the depreciated value, leaving you responsible for the remaining balance of your loan or lease. Gap insurance covers this difference, ensuring you aren’t left with a substantial financial burden. It’s especially beneficial for those with small down payments, long loan terms, or who purchase vehicles with high depreciation rates. Additionally, those who lease cars should consider gap protection, as leases often have lower down payments and high depreciation, making it more likely for a gap to occur.