What does gap insurance cover?
If you suffer a total loss of vehicle, regardless of the situation, gap insurance will cover the difference of the amount you still owe on your lease or loan. This amount is usually up to a threshold determined by your policy.
Gap insurance does not cover repairs on your vehicle, a down payment on a new vehicle, rental car fees while your vehicle is in the shop, and any interest, fees, or penalties accrued from your specific situation. Keep in mind, to qualify for gap insurance, you often will need specific coverage in your existing or new insurance policy.