Gap Insurance

Gap insurance may refer to the health or the automobile insurance industry. What is it? In short, it pays for the gap in your coverage.

Gap Health

In its original context gap insurance was solely for the health insurance industry. The average cost of insurance has been constantly rising in recent years and in most cases, your insurance company will pay up to 80% of your total costs in medical and hospital bills. Not only do you have a deductible you must pay before that 80% is to be covered, but you also have 20% of the total bill left to pay. Depending on what kind of medical bills you have to pay, that mere 20% can be enormous! If you're out of work due to an injury, then you might not even have that kind of money to spend. Gap insurance pays for the gap. The insurance company pays the 80% (or the agreed upon coverage) and the gap insurance provider covers the rest leaving you free from paying extra bills.

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