Full coverage insurance usually will only pay book value or actual cash value of a vehicle. Example if you owe $20,000 on the loan and the vehicle has a book value of $15,000 dollars you are still responsible for the $5,000 balance. This can mean you’ll still owe thousands of dollars to the finance company even after your insurance has paid for your car that has been totaled or stolen. This turns out to be a huge shocking surprise for most people caught in this unfortunate situation. Most loan or lease companies require you to have full coverage insurance on your car — to protect both your interests and theirs. GAP Insurance in the prior example would have paid the $5,000 dollar difference to satisfy the $20,000 dollar loan.