What is Gap Insurance?

Also called Loan/Lease Payoff Coverage, Gap Insurance covers the difference between how much an insurer will pay on a lost, stolen, or totalled vehicle, and how much the insured person still owes on the vehicle.

More On This Topic




Link to This Definition

Did you find this definition of Gap Insurance helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary