Back to Learn
Lease Owners: What You Need to Know About VSC and GAP Coverage
Published 6/2/25
Estimated Read Time: 5 minutes
TL;DR: When buying out your leased car, you have two important coverage options: Vehicle Service Contracts (VSCs) and Guaranteed Asset Protection (GAP) insurance. VSCs extend your warranty coverage, and GAP insurance protects you if your car is totaled and you owe more than it’s worth. Both options can be included in your monthly payments for convenience.
It’s acronym time. (Don’t worry, we only have two.) We’re here to talk about VSC and GAP coverage. If your lease is nearing its end and you're thinking about buying out your car, understanding these coverage options is key to making a smart decision.
Vehicle Service Contracts (VSCs)
You’ve probably heard the classic line: “Do you have a minute to talk about your car’s extended warranty?” But what does that really mean? Here’s the deal:
When you buy a new car, it often comes with a factory warranty—say, a 36,000-mile, 3-year coverage plan. But what happens when that runs out? That’s where Vehicle Service Contracts (VSCs) come in.
VSCs are like extended warranties, but with more flexibility. They’re not from the car manufacturer (like the traditional “extended warranty”), but from third-party providers that offer customizable plans to match your needs.
For example, if you're someone who drives a lot, it wouldn’t make sense for you to get a VSC that covers only 10,000 miles/year. So, when you buy out your leased car through Lease End, we use algorithms to offer you a VSC that matches your driving habits, whether you drive long distances or stay local.
Plus, your VSC payments are built into your new monthly loan payments for simplicity—no extra paperwork or payments to keep track of.
If you need more info on VSCs, check out this quick video from one of our partners, Ally.
GAP Insurance
Guaranteed Asset Protection (GAP) insurance is generally considered a must-have for lease owners or people with a loan out on their car. But what exactly is it?
GAP insurance helps cover the difference between what you may owe on a car and the car’s actual market value if it’s ever declared a total loss.
For example, let’s say you get into an accident and your car is totaled, and at the time of the accident, you owe $25,000 on your loan. Your car insurance should cover the current market value of the car at the time of the accident – but what if it’s only worth $20,000? You’d still owe $5,000 on a loan for a car you can’t even drive.
That $5,000 is the “gap” that GAP insurance covers. If you have GAP insurance and find yourself in a predicament like that, it’ll cover the $5,000 you’d still owe on the loan.
So, although it covers you in very specific kinds of situations, GAP insurance can save you a lot of money if you end up needing to claim it. Like the VSC coverage we offer, our GAP insurance rates are competitive and automatically built into your new loan payments.
For a recap on GAP insurance, check out this video from Ally.
Next Steps
Feeling a bit better about your coverage choices? Now that you’ve got a better idea of the options available to you (and why they’re important), get started with buying out your lease by entering your license plate or VIN in the box below. Or, give us a call at (888) 307-5197 to chat with an advisor.
About the author
Sarah Williams
Sarah loves breaking down complex topics and making them accessible to everyday readers. With four years of experience writing in the fintech and auto industries, she’s helped shape Lease End’s voice and given consumers the confidence they need to tackle leasing topics.
Lease End's mission is to empower auto lease owners with the technology to easily exit their lease. If you'd like to learn more about the lease-end options available to you, please don't hesitate to contact us. Our expert advisors are always prepared to answer your questions and are committed to finding the right plan for your individual needs.
©2025 Lease End
©2025 Lease End
Give Us a Call:
(844) 902-2842