Let's say you purchase a vehicle for $25,000. A year later, it is valued at just $16,000 but you still owe $21,000. Depreciation is a pain! Then your car is stolen and never recovered, or you have an accident in which it is damaged beyond repair. Most insurance policies will only reimburse you for the value of your vehicle, $16,000. That leaves you to repay the remaining loan balance of $5,000. If you have it, GAP Protection will help reduce or eliminate that $5,000 for you.