What is GAP coverage on a lease?
If your leased car is totaled or stolen, your insurance pays only its current market value, which can be less than what you still owe. GAP coverage pays that 'gap' so you're not stuck with the balance. Many leases include GAP automatically, but not all.
Why it matters
Frequently included in leases at no extra cost. Always confirm it's actually there.
What dealers don't tell you
- A lease that does NOT include GAP, leaving you exposed.
- Being sold expensive standalone GAP when it's already included.
How to negotiate it
- Confirm in writing whether GAP is included in your lease.
- If it isn't, compare the dealer's price against your own insurer's GAP add-on.
Worked example
"This lease includes GAP protection covering the difference between the insurance settlement and the lease balance."
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Explain my car leaseFrequently asked questions
Do I need GAP on a lease?
It's strongly recommended, and often already built into the lease. Without it, you could owe thousands if the car is totaled early.