No, gap insurance does not pay lease or loan payout if you are lose or are otherwise without a job. Gap insurance covers the balance of a lease or loan when a covered loss has occurred.

A covered loss in this situation usually requires the vehicle vehicle being declared a total loss such as the vehicle being stolen or an accident where the damages were so severe the car is totaled out. Either way the primary insurance has paid out the actual cash value (ACV) for the automobile.

Gap pays out the difference between ACV and the balance of the lease or loan. Without the ACV being paid out GAP insurance does not normally pay out thus a loss of a job would not qualify for gap insurance coverage being used.

There is payment protection insurance that some finance companies may bundle with loans or offer to those paying off a lease or loan.

Payment Protection Insurance will normally pay your monthly payments on any motor vehicle finance agreement, mortgage, or any type of loan if you become unemployed or cannot work due to accident or illness.

Payment protection is normally paid monthly, at the same time as any finance repayment. Not everyone is eligible for it; if you are long-term sick or self-employed, you probably may not be able to obtain this coverage.

If you are interested in this type of coverage go over the policy to make certain what if would pay if you were out of work. There may be a limit to how many payments are made under this plan. It may also not kick in immediately; you may have to find the money for the first three months after a change of personal circumstances (out of a job or illness so you cannot work).