If you've financed a vehicle recently, one of the pressing last minute decisions you're forced to make with the finance manager is should you buy or not buy GAP (Guaranteed Asset Protection) insurance. We'll give you our spiel so that you're not caught off guard. GAP is usually built into lease payments.
So, what is GAP insurance? GAP covers the difference between what you owe on your car loan and the current market (cash) value of the vehicle. The difference is known as GAP. GAP insurance is typically purchased by the buyer when there is a loan payment and the borrower owes more than the value of the vehicle in case the vehicle is stolen or involved in a major accident and is no longer driveable.
