GAP insurance meaning pays the balance of a loan or lease that has been declared a complete loss with the exception of the amount paid by the normal insurance. It excludes late payments, extended warranties, engine damages and routine repair. There are limits to some of the policies that address insurance deductibles. Knowing what GAP insurance covers and what is excluded assists the drivers to know whether it suits their financial requirements and it does not lead to a situation where they fail to understand when the time comes to claim it.