Leif Olson, Car Insurance Writer
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You qualify for gap insurance if you are leasing or financing a new vehicle. Your lender or lessor may also require you to purchase collision and comprehensive insurance, and in some cases, insurers may not even write a gap policy for you unless you are the car’s original owner.
Common Eligibility Requirements for Gap Insurance
- You are financing or leasing your car
- You already have collision and comprehensive insurance
- You bought your car less than 3 years ago
- You are the original owner of the car
Even if you are eligible, you do not need gap insurance if the total value of your vehicle is more than the amount you currently owe on your loan or lease. If you are eligible and you need gap insurance, check out WalletHub’s guide to the best gap insurance companies.
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