Short answer: GAP coverage helps protect drivers from paying the difference if insurance does not fully cover a leased vehicle after a total loss.

This article is part of our leasing education series, including “Is Leasing a Car a Good Idea for Me?”, which explains why proper lease structure matters.

What GAP exposure means

If a leased vehicle is totaled, insurance may not pay the full amount owed. That difference is known as GAP exposure.

Why GAP matters in leasing

  • Vehicles depreciate quickly

  • Insurance payouts may fall short

  • Unexpected out-of-pocket costs can occur

Proper lease planning accounts for GAP exposure upfront.

Is leasing a car a good idea? Only if risks like GAP exposure are planned for correctly.