: If your car is stolen or totaled, standard comprehensive insurance only pays the current market value.
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.
: Your repayment period is 60 months or longer .
: 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?
: You rolled debt from a previous vehicle into your new car loan.
: You bought a luxury vehicle or a model known for losing value quickly.
Consider gap insurance if any of the following apply to your financing or vehicle choice:
: Gap insurance pays the remaining debt to your lender so you aren't stuck paying for a car you no longer own. When You Should Buy It
