EV insurance glossary
GAP coverage
Optional protection that may address some of the difference between an eligible vehicle-loss settlement and an outstanding finance balance.
GAP commonly stands for guaranteed asset protection. Depending on the product and market, it may cover some eligible difference between a vehicle-loss settlement and an outstanding loan or lease balance after a total loss.
GAP products are not all the same and may have eligibility rules, exclusions, limits, waiting periods or other conditions. It is not a guarantee that every amount owed will be paid. Read the actual contract and ask how it coordinates with the auto policy and lender.