GAP Insurance (Guaranteed Asset Protection)

Definition

Car insurance coverage that pays the difference between the vehicle's actual cash value and the amount you owe on your auto loan.

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Auto Insurance Cost

This is useful if your car is totaled or stolen and you owe more than the car is worth (being "underwater" on the loan).

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Auto Insurance Cost

Estimate your potential auto insurance premiums based on driver profile.

Related Automotive Terms

Expand your understanding with related concepts

ABS (Anti-lock Braking System)

A safety system that prevents wheels from locking up during braking, allowing the driver to maintain steering control.

AWD (All-Wheel Drive)

A drivetrain that employs a front, rear and center differential to provide power to all four wheels of a vehicle.

Chassis

The load-bearing framework of an artificial object, which structurally supports the object in its construction and function.

Depreciation (Automotive)

The decline in a car's value over time.

Engine Displacement

The total volume of air/fuel mixture an engine can draw in during one complete engine cycle.

View all Automotive terms

This software is for simulation and planning purposes only. Outputs are estimates based on your inputs and do not constitute professional financial, legal, or tax advice. Always consult a qualified advisor before making business decisions.