What is "gap insurance"?

What is "gap insurance"?

James Bell (Publisher, Auto Reviewer) gives expert video advice on: What is "auto insurance"?; What is "gap insurance"?; What is a "deductible"? and more...

With regards to auto insurance, ‘gap insurance' is usually offered when somebody's going into a lease. The insurance gap is covering the gap between what the vehicle is worth and how much you owe in the lease. This is in the case of the vehicle being absolutely destroyed and won't be something that you'll be handing in at the end of that lease term.