Gap coverage is an option you can select when buying a new car. It is usually only offered until the vehicle is 1-2 years old with most companies. It's helps protect you from depreciation (being upside down on a car loan) if there is a total loss to the vehicle while it is still fairly new.
You need to look closely at the terms of gap coverage, as they vary from one company to the next. some companies will flat out buy you a new car of the same value. others will increase the total loss value of the vehicle (usually 25%).
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You need to look closely at the terms of gap coverage, as they vary from one company to the next. some companies will flat out buy you a new car of the same value. others will increase the total loss value of the vehicle (usually 25%).