One of the most frustrating circumstances is when your car is totaled and the amount owed on your car is greater than the fair market value of your car. The total loss value is paid directly to the finance company, you have no car, and you still owe money on your wrecked car – which is now in the junkyard.  This situation can be avoided by obtaining gap insurance at the time of purchasing your vehicle.  Gap insurance will literally pay for the “gap” that exists between the fair market value of your car and the amount owed to the finance company.