GAP Insurance Need Calculator
Compare your loan balance to your car’s value to see the “gap” GAP insurance would cover if the vehicle were totaled.
How it works
Gap = max(0, loan balance − car value) · Out of pocket if totaled = gap + comprehensive deductible
If your car is totaled or stolen, standard insurance pays only its actual cash value (ACV) — the depreciated market price — not what you still owe. GAP (Guaranteed Asset Protection) insurance covers the difference. A gap opens up when you make a small down payment, take a long loan, or roll negative equity into the financing, because a new car depreciates faster than the loan balance falls in the early years. Once you owe less than the car is worth, GAP coverage no longer provides value.
Worked example
You owe $28,000 but the insurer values the car at $22,000. The $6,000 gap is what you would still owe after a total-loss payout. Add a $500 deductible and you would be about $6,500 out of pocket without GAP coverage.
Frequently asked questions
Who needs GAP insurance?
Drivers who owe more than their car is worth — typically those with a small down payment, a loan of 60 months or longer, a rapidly depreciating model, or negative equity rolled in from a previous vehicle. If you owe less than the car’s value, you generally don’t need it.
When can I drop GAP coverage?
Once your loan balance falls below the car’s market value, the gap is gone and the coverage no longer pays out. Re-check periodically as the loan amortizes and the car depreciates — many people carry it longer than necessary.
Does GAP cover my deductible?
Not always. Some GAP policies also pay your comprehensive deductible and some do not, so the out-of-pocket figure here assumes you still owe the deductible. Check your specific policy terms.
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Educational estimate — real figures vary by vehicle, lender, dealer and local rules.