GAP insurance has nothing to do with your auto insurance policy.

It is usually purchased from the company financing your vehicle. If you owe more money than the fair market value of your car, your GAP insurance pays that GAP in price. Hence, if the Fair Market Value of the vehicle is $10,000 and you owe $12,000, you are “upside down” or “under water” on your car. If you have GAP insurance, that insurance will cover the $2000 difference and you will owe nothing.