In Arizona, if you are in an auto accident auto insurance (either yours or the at-fault drivers) will pay for the cost to fix or repair your car. Or, if your car is a total loss, the auto insurance will pay you the market value of your car. But only the market value.
Unfortunately, many people owe more money on their car then the car’s current market value. The difference between what is owed and the market value is the GAP.
When you purchase or lease a new car with little money down – it is always a good idea to buy GAP insurance coverage. You can usually purchase this insurance through the auto dealer. GAP insurance will pay the difference between what you owe and the market value of your car – if you are in an auto accident and your car gets totaled.