According to gap contracts, which of the following is an insured event?

In the context of gap contracts, the insured event specifically refers to situations where the coverage becomes applicable, particularly in cases of total loss. A total loss occurs when a vehicle is deemed irreparable or stolen without recovery, leading to the insurance payout being necessary to cover the outstanding amount owed on a vehicle loan or lease.

Gap insurance is designed to bridge the financial gap between the amount that the insurer will pay for the vehicle's current market value at the time of loss and the remaining balance of the loan or lease. Since total loss scenarios directly trigger the benefits of gap coverage, this makes it the correct answer in the context of insured events within gap contracts.

Accidental damage to the vehicle, regular maintenance costs, and depreciation do not fall under the definition of insured events in gap contracts. Accidental damage typically involves repairs and does not result in a total loss that would necessitate gap coverage. Regular maintenance and depreciation are ongoing costs and changes in value that are not addressed by gap insurance, which focuses on significant loss incidents.