<Tr> <Td> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> </Td> </Tr> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> <P> Guaranteed Auto Protection (GAP) insurance (also known as GAPS) was established in the North American financial industry . GAP insurance is the difference between the actual cash value of a vehicle and the balance still owed on the financing (car loan, lease, etc .). GAP coverage is mainly used on new and used small vehicles (cars and trucks) and heavy trucks . Some financing companies and lease contracts require it . </P> <P> GAP insurance covers the amount on a loan that is the difference between the amount owed and the amount covered by another insurance policy . Some GAP policies also cover the deductible . This coverage is marketed for low down payment loans, high interest rate loans and loans with 60 month or longer terms . GAP insurance is typically offered by a finance company at time of purchase . Most auto insurance companies offer this coverage to consumers . GAP insurance is usually paid upfront and, for that reason, one is eligible for a refund if he / she sells or refinances their vehicle . </P>

What does gap mean when buying a car