If you’re financing or leasing a vehicle, GAP coverage is worth serious consideration. When a car is totaled or stolen, your insurer pays its actual cash value — which depreciates the moment you drive off the lot. If you owe more on your loan or lease than the car is worth at the time of the loss, that gap is your problem without this coverage. New vehicles can depreciate 15–20% in the first year alone. GAP coverage pays the difference so you’re not making payments on a car you no longer have.