Should You Buy Gap Insurance On New Car -

Here is everything you need to know about GAP insurance and whether it’s a smart move for your wallet. What is GAP Insurance?

If you rolled negative equity from an old car loan into your new one, you definitely need coverage. When You Can Skip It You can probably pass on GAP insurance if:

GAP insurance isn't necessary for everyone, but it is a lifesaver in these specific scenarios: should you buy gap insurance on new car

Standard auto insurance covers the "actual cash value" of your car. The problem? New cars lose value the second they leave the dealership. This creates a "gap" between what you owe the bank and what the car is actually worth.

If you’re paying the car off in three years or less, you'll reach "equity" very quickly. 💡 Pro Tip: Don’t Buy at the Dealership Here is everything you need to know about

Loans spanning 60 months or longer mean you’re paying off the principal slower than the car is depreciating.

GAP (Guaranteed Asset Protection) insurance covers the difference between your car’s market value and the remaining balance on your loan or lease. When You Can Skip It You can probably

Instead, call your current auto insurance provider. Adding GAP coverage to your existing policy usually costs only . It’s the exact same protection for a fraction of the price. The Bottom Line