If you own the car and you are involved in an auto accident and it is totaled, you will be thankful that you bought GAP Insurance!  Cars lose value as soon as they are driven off of the dealer's parking lot.  Imagine if you did not pay cash for the car and took out a loan with the bank or the auto dealership and you totaled it right off of the lot....you might be upside down on the value.  In that case, GAP Insurance would kick in and pay the difference in what is owed.  Check out the article or blog on this for further discussions.