Will GAP insurance cover the full amount of a vehicle if the insurance coverage on a vehicle has lapsed and it is totaled?

NO. GAP covers the GAP left (if any) of what someone owes and the current market value of the vehicle should the loan balance exceed market value. In other Words, you owe $16,000 on a vehicle and your car's only worth $13,000, YOU will be held repsonsible for the remaining $3,000. If you have GAP, it will pay the remaining $3,000 and you will be left with nothing but you also will owe nothing. Sale and loan contracts are legally binding and once signed that loan MUST be repaid. If such contracts weren't legally binding dealerships wouldn't be in business.