If you're the first owner of a brand-new vehicle, you may be able to buy additional insurance coverage to help protect you against losing money if your vehicle is totaled.

Loan or lease gap coverage is an optional car insurance coverage that helps pay the difference between the depreciated value of your vehicle and what you still owe the lender if your car is totaled in a covered loss.

In short, comprehensive and collision coverages typically pay up to the depreciated value (aka the actual cash value) for a totaled vehicle. But, if the depreciated value is less than what you still owe on your car loan, you may have to finish paying off the lender, with your own money, for a vehicle that's no longer drivable. That's why it's important to think about buying additional coverage, like loan or lease gap coverage, if you're financing a brand-new vehicle.