Gap Coverage

If your car is totaled, and the car’s value is lower than the amount remaining on your loan, Gap Coverage will cover the remaining amount you owe.1

What is Gap Coverage?

If you have a car loan, Gap Coverage (gap insurance) will cover the remaining amount you owe on the car in the event that it’s totaled. If you find yourself in this situation, the price difference can be steep. Gap Coverage can help you avoid paying out of pocket.
Two woman ride happily down the road in a convertible.

How does gap insurance work?

Collision

If your car is totaled…

Let’s say you bought a car for $20,000, and you have $15,000 in payments. The “actual value” of the car (aka how much the car is worth) is considered $10,000.
Loss of Use

Gap Coverage takes care of the difference

Gap Coverage would make sure you’re covered for that $5,000 difference between remaining payments and the car’s actual value.
Question Mark

What else to know

This optional coverage must be purchased at the same time as your car, and you must be the car’s first owner.
1Optional coverage in some states; availability varies by state. Eligibility rules apply.