No, Gap insurance providers would not normally offer its coverage if your loan is through a private individual instead of a proven financial institution such as a bank or finance company. With a private person there is not a structured loan of a financial institute that a Gap insurance company requires.

When dealing with a bank or finance company the Gap insurance carrier knows the terms, sees the paperwork, etc. With a private party loan it is hard for the Gap carrier to be assured that the loan is only for the vehicle, that payments were made properly, etc.