BackJULY 20, 2026
What Is a Gap Waiver?
A gap waiver is a contract provision under which a lender waives certain remaining balance after a covered total loss.
Gap Waiver in plain English
A gap waiver is a contract provision under which a lender waives certain remaining balance after a covered total loss.
It is not necessarily an insurance policy, and exclusions can apply to missed payments, add-ons, and deductibles.
The event must meet the contract.
What to review about gap waiver
The complete transaction matters more than the label alone.
- 1
Covered loss
The event must meet the contract.
- 2
Excluded balance
Late charges and products may remain.
- 3
Deductible
Coverage varies.
- 4
Cancellation
Separately charged waivers may have refund rules.
A practical example
A leased vehicle is totaled and the included waiver addresses the covered shortfall after insurance.
The customer should compare the complete financial and practical effect before moving forward.
Common questions
Is it included in every lease? No.
Is it the same as insurance? No.
Does it cover rolled negative equity? Not always.
Related terms
Continue with gap insurance, lease payoff and amount financed.
Questions about gap waiver?
Belgravia can help identify the protection already included before optional products are added.