Many would think that it is the famous brand of clothing store, but it is not so in the insurance environment means something totally different.
The Gap is the cover that covers the difference between the value of the insured vehicle and the amount owed to the bank / cooperative / financial that financed the cost. That is, as an example: If the car has a value of $17,000 and $30,000 is owed, the GAP insurance covers the $13,000 difference. It is the insurance that pays the difference between the current cash value of the car and the amount remaining in the loan balance.