Gap insurance return to invoice refers to a financial compensation that bridges the gap between the remaining loan balance and the actual cash value of a damaged or stolen vehicle as determined by an insurance company.
This coverage ensures that the policyholder will not be responsible for any outstanding loan balance after an insurance settlement, providing valuable protection against financial loss. Historically, gap insurance return to invoice saw significant growth due to the increasing popularity of leasing and financing vehicles, which often resulted in negative equity situations.
