GAP protection covers the scenario where a motor vehicle is totaled in an accident or stolen and not recovered. Insurance will pay for the retail value of the car minus the deductible. If that is not enough to pay the car loan, the consumer is responsible for the difference. If a consumer has GAP protection, they theoretically will not have to pay that difference (but, read on - many consumers learn that they do not have the protection that they think that they have). The term "GAP", which evokes the image of a gap between the insurance payout and the outstanding loan balance, is sometimes used as an acronym for product names such as "Guaranteed Asset Protection" or "Guaranteed Auto Protection".