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What does the auto insurance gap mean?
Auto insurance gap refers to "gap insurance in auto insurance", also called "gap insurance in auto insurance" and "difference insurance between insurance compensation and loan balance". This kind of insurance belongs to additional insurance, which covers the risk that the compensation cost is lower than the purchase price and loan balance in the event of an automobile accident.

It is a common phenomenon that the car purchase credit exceeds the car purchase price. However, if the car is stolen, sold, damaged or has an accident, and the insurance company fails to fully compensate, you will face the difference between the loan and the actual value of the car, which will be borne by you. At this time, the insurance of the auto insurance gap can provide you with protection.

Compared with traditional auto insurance, GAP pays more attention to the overall protection of car owners, ensures that in the event of unexpected losses, it reduces the economic losses faced by car owners and realizes the comprehensive coordination between market value and car owners' risk-taking. Therefore, car owners can choose to add a gap in auto insurance when choosing an insurance plan, so as to fully protect the economic risks they face when buying a car or damaging the vehicle.