Gap Insurance or Asset protection insurance is designed that in an event of your vehicle is declared a total loss by your comprehensive insurer and the insurer pays the financier the total loss payout, the insurer will pay to the financier the short fall amount. It is hard to comprehend but especially in the case that you have cover on a second-hand car an insurer will only pay the market value of the car if there is a total loss so therefore you may be left with a shortfall and in some cases, can be thousands of dollars.

See the Gap Insurance Product Disclosure Statement for more information