No, Gap insurance does not cover the cost of a rental car if your car was totaled out due to an accident. Gap insurance is there to pay the difference between the actual cash value (ACV) of the vehicle and the current outstanding balance on your loan or lease. Gap Insurance protects your vehicle lease or loan this way in that if you owe more than the car is worth (are upside down on your payments) than it keeps you from having to pay on a car you no longer can use since it has been declared a total loss by a primary insurance company. Sometimes Gap will also pay your regular insurance deductible.

So your Gap insurance may go as far as paying for your Collision deductible but it does not have benefits such as paying for the towing of your vehicle or a rental car you can use until your settlements with your primary insurer and Gap insurer are made.

If your car was totaled and your primary insurance company is paying out ACV for the vehicle than to be paid for a rental car during the settlement period you would need to have Rental Car Reimbursement (RREIM) as part of your coverages for your auto insurer to pay for or reimburse you for your use of a rental vehicle.

If instead your car was totaled out by another person and your claim for the ACV of the vehicle is with their Property Damage Liability coverage than often this third party claim will also include the use of rental car during the settlement period.