Should You Buy Gap Insurance -
Buying gap insurance is a strategic financial decision that depends on whether you are "underwater" on your vehicle loan—meaning you owe more to your lender than the car is actually worth.
: If your car is stolen or totaled, standard comprehensive insurance only pays the current market value. should you buy gap insurance
Guaranteed Asset Protection (GAP) insurance covers the "gap" between your car's and your outstanding loan or lease balance . Buying gap insurance is a strategic financial decision
Consider gap insurance if any of the following apply to your financing or vehicle choice: should you buy gap insurance
: You drive significantly more than average, which accelerates the car's loss of value. When You Can Skip It You likely do not need gap insurance if: Should You Buy Gap Insurance for Your New Car?