Lilah Butler, Car Insurance Writer
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Yes, gap insurance covers at-fault accidents. Gap insurance covers the difference between the amount you still owe on your car loan/lease and the actual cash value of the car if it’s totaled in an accident, regardless of whether you are at fault or not. If you're not at-fault, you can also try to recover what you still owe on your car from the at-fault party's insurance company.
It's worth noting however that gap insurance only works if your car is totaled. If your car is not totaled, your collision insurance will cover the damages for an at-fault accident.
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