McKayla Girardin, Car Insurance Writer
No, gap insurance does not expire until your loan or lease is paid off. Gap insurance that was bought from a lender, lessor or dealership lasts for the life of the loan or lease, and gap insurance from an insurance company lasts for as long as it is part of an active policy. Once your loan or lease is paid down, you’ll need to drop the coverage from your insurance policy.
Gap insurance pays for the difference between your vehicle’s actual cash value and how much you owe on a loan or lease. Once you owe less than your vehicle is worth, gap insurance is essentially useless and can be cancelled.
To learn more, check out WalletHub’s guide to gap insurance.
People also ask
Did we answer your question?