The finance office has a way of making a car purchase feel like a game show. First comes the vehicle price, then the interest rate, then a parade of add-ons that can make the monthly payment mysteriously climb. GAP insurance often gets a starring role, especially when the dealer warns that you could owe thousands after a serious accident.
That warning contains a real financial concern, but it does not automatically mean you need GAP. GAP, short for Guaranteed Asset Protection, can cover some or all of the difference between what you owe on a vehicle loan and what your auto insurer pays after the vehicle gets stolen or totaled.
