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If you're involved in an auto accident that leaves your new car "totalled", (we all hope this never happens,) you could end up paying off a loan on a car that you can't even drive.

That's where gap insurance comes in.
A gap car insurance policy insures you for the difference between what you owe on your car and what your insurance company says it's worth.

And if you're leasing your car, it's very likely the leasing company will require gap insurance as well.