: Most lease agreements benefit from or even require gap insurance because depreciation often outpaces your payments.
: You rolled debt from a previous vehicle into your new car loan.
: Your repayment period is 60 months or longer . should you buy gap insurance
: 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
: You put down less than 20% of the car's price. : Most lease agreements benefit from or even
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.
Consider gap insurance if any of the following apply to your financing or vehicle choice: : Gap insurance pays the remaining debt to
Guaranteed Asset Protection (GAP) insurance covers the "gap" between your car's and your outstanding loan or lease balance .