GAP
Transportation & Travel abbreviation · Automotive
| Stands for | Guaranteed asset protection |
|---|---|
| Categories | Transportation & Travel |
GAP stands for Guaranteed asset protection, an automotive abbreviation also used in business.
Optional insurance that covers the difference between what a driver owes on a car loan or lease and the vehicle's actual cash value if it is totaled or stolen. GAP coverage matters most with small down payments or long loans.
Example: Without GAP, I'd still owe $6,000 on a car that the insurer valued at less than the loan.
Usage notes
New cars can lose 20 percent or more of their value in the first year, leaving many buyers "upside down." Dealers often mark up GAP coverage heavily, and it is usually cheaper from an insurer or credit union. Many leases include GAP coverage automatically.
Related abbreviations
More automotive abbreviations
- EV – Electric vehicle
- EVAP – Evaporative emission control system
- FCEV – Fuel cell electric vehicle
- FCW – Forward collision warning
- FSD – Full Self-Driving
- FWD – Front-wheel drive
- GAWR – Gross axle weight rating
- GCWR – Gross combined weight rating
- GDI – Gasoline direct injection
- GT – Gran Turismo
- GTI – Gran Turismo Iniezione (grand touring injection)
- GVWR – Gross vehicle weight rating