Gap insurance

{
  "id": "MLC-T-IND-002510",
  "term": "Gap insurance",
  "field": "Industrial and trades",
  "definition": "An optional type of automotive coverage that pays the remaining balance on a loan or lease after a total loss, if the vehicle's actual cash value is less than the amount owed. When a vehicle is declared a total loss from an accident or theft, the primary insurance payout may not cover the full loan, leaving the owner with a financial deficit. This 'gap' between the insurance settlement and the outstanding loan amount is what Guaranteed Asset Protection (GAP) insurance is designed to cover.",
  "subject": "Automotive",
  "translations": {
    "de": "Gap Insurance",
    "es": "seguro de protección de capital",
    "fr": "assurance \"gap\""
  },
  "url": "https://mlchart.com/terminology/industrial/gap-insurance/"
}