GAP insurance, or “guaranteed auto protection” insurance, is a kind of debt cancellation agreement. Read on to learn what this term means, and when it may be a smart investment for you as a driver. Let our expert authors spell out the facts you need on GAP insurance.

GAP Insurance: 10 Questions to Ask Before Buying Guaranteed Auto Protection Insurance

GAP Insurance: 10 Questions to Ask Before Buying Guaranteed Auto Protection Insurance
By Lori Mandell

If you travel to London and ride the tube, you will invariably hear the friendly British- accented voice telling you to “mind the gap” every time you get off the train.  The gap she is referring to is one between the train and the platform that can catch the heel of your shoe as you are stepping off the train.  That kind of gap cannot be filled, so you have to be extra careful not to get caught in it.  The kind of gap for which they sell insurance is something that can be filled, so you can rest easy and not worry about it.

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Auto Loan Lease Coverage (or "GAP Insurance"): What It Is & Why You May Need It

Auto Loan Lease Coverage (or
By Helga E. Schauer

GAP Insurance, or Auto Loan Lease Coverage as it is technically named, is not an insurance policy at all.  Guaranteed Asset Protection or Guaranteed Auto Protection is actually a debt cancellation agreement.  This “protection”, which is most often sold to you when discussing the economic details of your purchase with an auto dealership’s Financial Manager, is designed to reduce the impact of the negative equity you have in a new vehicle, if you should be in a total loss collision shortly after purchase.

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