Helping you decide
Let's say you purchase a $20,000 car and it gets totaled in an accident with $18,000 remaining on your loan. If the car is valued at $15,000, that's all the insurance will pay and you'll be responsible for the $3,000 remaining on the loan but have no car to drive. GAP coverage would pay that difference.
However, you must continue to make your monthly payments until the GAP coverage is settled—you wouldn't want late payments to reflect negatively on your credit score. It's important to note that GAP coverage doesn't pay for late fees, additional interest accrued from late payments or account extensions.