Gap Insurance

getting to know

Gap Insurance

Gap insurance pays for the difference between the value of a car at the time it is totaled in an accident or stolen, and the balance of its loan or lease. Standard comprehensive and collision insurance policies only reimburse the value of the totaled car, not any balance owed on a loan or lease. For example, if you owe $20,000 on your loan and your car is only worth $15,000, your policy’s loan or lease coverage covers the $5,000 gap, minus your deductible

We Can Help You Find The Right Gap Insurance Plan

There are a lot of gap insurance options. We can help you make the right decision to purchase a plan that works best for you.

Find A Plan For Your Needs

Do I need gap insurance?

Gap insurance isn’t required by any insurer, but some leasing companies may ask you to purchase it. Also, when buying a new car, some dealerships may add gap insurance to your loan. You can, however, decline the coverage.

Is gap insurance worth it?

Yes, but generally when there’s a significant difference between your car’s value and what you owe on it.

Consider buying gap insurance in these instances:

  • You have a longer financing term for your car. The longer your car is financed, the higher the chance of you owing more on the car than it’s worth.
  • You want to protect yourself against your car’s depreciation. Some cars have a higher depreciation rate than others.
  • You have a loan rollover. If you owe more on the loan than your car is worth at the time of renewal, gap insurance can help protect you against negative equity.

How much is gap insurance?

You can get gap insurance from the dealership or bank that’s financing your car or an auto insurance provider. Keep in mind: gap insurance is generally more expensive if you get it from the dealership or bank than it is to add to your full car insurance coverage.

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