Gap insurance is a financial safeguard that covers the difference between your car’s depreciated market value and the outstanding loan amount if your vehicle is stolen or totalled. Since standard car insurance only reimburses the market value, gap insurance prevents out-of-pocket expenses. It’s particularly useful for new cars, long-term loans, leased vehicles, and high-loan amounts. Available through dealerships, insurers, and banks, gap insurance is an affordable add-on that ensures financial security and peace of mind.

You might be familiar with buying car insurance online or offline, but have you ever heard of gap insurance? It is an optional vehicle insurance that helps pay off your auto loan if your car is totalled or stolen and you owe more than the car's worth. Gap insurance is not currently available in India but is commonly offered in other countries. It works best when purchased alongside comprehensive insurance.