What Is Gap Coverage In Auto Insurance? 
Gap coverage is an option you can select when buying a new car . It is usually only offered until the vehicle is 1-2 years old with most companies . It 's helps protect you from depreciation -LRB- being upside down on a car loan -RRB- if there is a total loss to the vehicle while it is still fairly new . You need to look closely at the terms of gap coverage , as they vary from one company to the next . some companies will flat out buy you a new car of the same value . others will increase the total loss value of the vehicle -LRB- usually 25 % -RRB- . 