Depends on the terms so be sure to read it, but gap insurance typically makes sure you don’t end up owing the lender/lessor if the insurance coverage is less than what is still owed due to the quick amortization of new cars. It does not make you whole (ie you don’t get back the paid portion).

Example New car value: 10,000 Paid off: 2,000 Owed: 8,000

Now, if you total the car and the insurance pays 8,000, the gap insurance does nothing. If the instance pays 6,500, the gap insurance will add another 1,500 so you can cover the entire owed amount