Can someone explain to me what exactly "gap insurance" is??

Whats the difference between gap insurance and just insurance?

 

from what my manager explained to me when her house was broken into and car stolen....

Just say someone steals your car and you have 20K worth of payments left, if the car is only worth 18, you owe 2K, i believe Gap fills it in... someone correct me if i am totally off based.

 

yeah, it's covers the difference between whatever you have is worth, and how much you owe on it, in the event of a total loss. Not as important for cars that depreciate slowly, moreso for others.

 

Gap is very common in leases because more is often owed than the value of the car

it is my understanding AHMC won't lease a car without gap

 

Some insurance companies give it to you free, like mine (Liberty Mutual).