No, GAP insurance does not give you money as a down payment on a car after your vehicle was totaled and paid off by a settlement for the car's actual cash value (ACV) and gap insurance for the balance of the loan or lease.

Gap insurance does not pay previous payments you have paid on your vehicle or the down payment on a new car. GAP insurance is intended to pay you if a total loss of your vehicle occurs. Once this happens GAP insurance will pay the difference between the actual cash value of the vehicle and the current outstanding balance on your loan or lease.

Sometimes GAP insurance will also pay your regular insurance deductible but it does not pay for a down payment. The concept behind this type of insurance is to help a car owner that owes more on their vehicle then it is worth (upside-down on the loan) to not be stuck with car payments if their car is totaled out in an accident.

Gap insurance is not intended to help pay for getting a new vehicle or repay down payments or previous payments that were made on the car that is now a total loss.

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