Leased Vehicle Total Loss

GAP Insurance (Guaranteed Asset Protection) covers the difference between what your auto insurance pays for a totaled vehicle and what you still owe on the loan or lease. It matters most when the vehicle has depreciated faster than the loan balance has been paid down.

Actual Cash Value is the dollar amount your insurance company is required to pay you for a totaled vehicle. ACV represents the price you would pay to buy a comparable used vehicle of the same make, model, year, mileage, and condition in your local market — not the vehicle's original price, replacement cost, or what you still owe on a loan.