Car insurance is necessary to stay protected financially on the road. In addition to liability insurance and collision coverage, you may also need to purchase gap insurance. Gap is an insurance industry acronym for "guaranteed auto protection". Whether you need car gap insurance can depend on the type of vehicle you purchase or lease. But is gap insurance worth it? It may be if you believe you may owe more money on a vehicle than your comprehensive auto insurance policy would pay out if you were to file a claim. Gap insurance—also known as guaranteed auto protection—reimburses a car owner when the payment for a total loss is less than the outstanding loan or lease balance. Gap insurance makes the most sense for people who put no money down and choose a long payoff period. For a couple of years, they may owe more on the car than its current value. It also makes sense for those who lease rather than purchase a vehicle. You may be able to skip gap insurance if you made a down payment of at least 20% on the car when you bought it, or if you're paying off the car loan in less than five years. You don't need gap insurance for the life of the car, just until your loan balance doesn't exceed the car's value.