Gap insurance doesn't pay for you to get a new, replacement vehicle. Instead, it ensures that you don't have to continue payments on a car that is a total loss. Gap insurance pays the difference between what your car is worth and what you owe on your car loan if your vehicle is stolen or totaled. Specifically, it pays the difference between the actual cash value of your car at the time of the loss and the amount owed on the vehicle to a lender at the time of an accident or theft.