Know the gap
before it matters.
Loan balance ≠ vehicle value
Explore the basics →Featured topics
The numbers behind the drive.
GAP coverage
What the gap actually is
A loan balance and a vehicle value are two separate numbers that follow two separate curves. The distance between them is the gap.
Depreciation
How depreciation moves value
Vehicle value tends to drop fastest in the earliest months of ownership, long before the loan balance has had time to fall much.
Vehicle loans
How a loan balance declines
Early payments are weighted toward interest, so the principal comes down slowly at the start of a longer term loan.
Total loss
What total loss means
A total loss settlement is generally based on the vehicle value at the time of the incident, not on what is still owed on it.
Exclusions
Reading the exclusions
Coverage documents list what is not included, such as unpaid late fees, certain add ons, missed payments, or negative equity limits.
Loan balance vs value
Comparing your own numbers
A payoff quote from your lender and a value estimate for your vehicle are the two figures to line up side by side.
Highlight
Two curves.
One critical distance.
A payoff amount and a current value estimate tell the clearest story.
Tools
Built to make the difference visible.
Gap visualizer
A simple diagram that shows a loan balance line and a vehicle value line, and shades the distance between them.
Hypothetical examples
Illustrative scenarios with clearly labeled made up numbers, used to show how the gap widens and narrows over a term.
Terminology guide
Plain language definitions for terms such as actual cash value, payoff amount, negative equity, deductible, and settlement.
Loan value worksheet
A printable sheet for writing down your payoff amount, your value estimate, and the difference between them.
Text preferences
Separate options for account notifications and recurring marketing, both entirely optional.
How it works
A clearer route through the paperwork.
Step 01
Find your payoff amount
Use your lender statement and current vehicle information. The worksheet keeps the comparison simple.
Step 02
Estimate current vehicle value
Use your lender statement and current vehicle information. The worksheet keeps the comparison simple.
Step 03
Compare the two figures
Use your lender statement and current vehicle information. The worksheet keeps the comparison simple.
FAQ
Straight answers.
The difference between the amount still owed and the vehicle’s current value.