Guaranteed Auto Protection goes above and beyond your automobile coverage. GAP coverage offers you protection against your financial liability when there is a "gap" between what your insurance pays and the balance of your car loan or lease. Here's how it works:
In today's automobile market, during the first few years you own your vehicle, your loan/lease balance can be higher than the actual value of your car (as a result of your car's depreciation, especially if you used a low or no down payment finance option). As your car's value declines, the amount you owe on your loan or lease can be significantly higher. If your car were to be stolen or perhaps totaled in a crash, you would still be liable to pay the difference between the insurance settlement and your outstanding loan/lease balance.
That is where GAP comes in. It covers the difference between the market value of your vehicle (which your auto insurance would pay for) and the amount you owe on the loan.