Loss insurance for auto extended warranty, also known as gap insurance, is a type of optional coverage that can help protect you financially if your car is totaled or stolen. It covers the difference between the amount you owe on your auto loan and the actual cash value of your car at the time of the loss.
Gap insurance is typically purchased at the same time as an extended warranty, and it can provide peace of mind in the event of a covered loss. Without gap insurance, you could be responsible for paying off the remaining balance on your auto loan even if your car is totaled or stolen. This could result in a significant financial hardship.
