What is gap insurance?

K

Kinga2015

New Member
Can someone please explain what GAP cover or GAP insurance means?
I've read a lot about loans, but I'm confused as to why they say I should be careful and make sure I have GAP cover, when applying. Don't all loans come with some sort of insurance?
Excuse my dumb questions, I'm new to all this getting a loan frenzy and I need to know what I'm getting myself into! :)
 
Gap insurance covers the difference between your vehicle’s worth and how much you owe on the car. The insurance helps if your car is stolen or totaled (repair cost is more than the car is worth).
 
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