Leif Olson, Car Insurance Writer
@leif_olson_1
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.
People also ask
Can gap insurance deny a claim?
Yes, gap insurance can deny a claim if the claim is for something that is not covered by your gap insurance policy or you’ve missed recent insurance payments. Gap insurance pays for the “gap” between a car’s actual cash value (ACV) and the remaining balance on a loan or lease if the car is stolen or totaled.
Examples of When Your Gap Insurance Claim May Be Denied
- Your car only needs normal repairs.
- Your...
Can I purchase gap insurance by itself?
You can purchase gap insurance by itself if you get it through a dealership, bank or credit union, though you will have to buy additional coverage elsewhere. Financed cars often are required to have both collision and comprehensive insurance, in addition to state-mandated coverage, so it is not possible to only have gap insurance.
Where to Get Gap Insurance
- Car dealerships
- Credit unions
- Banks
- Auto insurance companies
...
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