You have three main options, but they vary significantly in cost: What Is Gap Insurance and How Does It Work? - Progressive
Most leasing companies require gap coverage to protect their asset. Many leases already include it, so check your contract first. do you need gap insurance when buying a new car
You already have in the vehicle (the car is worth more than the loan balance). Where Should You Buy It? You have three main options, but they vary
If you put down less than 20% , you will likely have "negative equity" (owing more than the car's value) for the first few years. You already have in the vehicle (the car
If that new car is stolen or totaled in an accident, standard insurance only pays the —what the car is worth today , not what you paid or what you still owe. Gap insurance (Guaranteed Asset Protection) bridges this divide by paying the difference between your insurance settlement and your remaining loan balance. Who Should Get Gap Insurance?
While not required by law, gap insurance is a near-necessity in several common situations:
Do You Need Gap Insurance for Your New Car? The moment you drive a new car off the lot, its value drops. For many buyers, this creates a risky financial scenario: you might owe more on your loan than the car is actually worth.