GAP insurance is used to cover the difference between what is due on a car and the actual cash value if a new or leased car is totaled before the balance of its loan or lease is paid off. Again this insurance kicks in if the vehicle is declared a total loss.

Coverage for specific parts of your vehicle, such as the engine or transmission, to be repaired or replaced is usually done with by means of a warranty. Warranties can be purchased at dealerships, financial institutes or online. Some financial entities also offer mechanical breakdown insurance if you are worried about having mechanical issues with your vehicle.