Gap Insurance,
What is Gap Insurance?
If you repay a loan or lease and incur an overall loss, there may be a difference between the market value of your car and what you have. This optional coverage makes a difference.
The definition of Gap Insurance is: Auto insurance option that works in the event of theft or complete loss of your vehicle. Coverage insurance covers the actual cash value of your vehicle and the difference or difference you still have. GEICO does not currently offer Gap Insurance. Check with your finance company to see if Gap Insurance is available or available to you.
The auto insurance options available in some states cover the difference between the actual cash value of the car and the amount owed to the consumer leasing or finance company in the event of theft or destruction. It is mainly used for car rental.