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No, gap insurance is not required in New York or any other state. Even though gap insurance is never required by state law, auto lenders and lessors often make borrowers get this type of coverage to protect their investment in financed vehicles.
Gap insurance is an optional type of coverage that pays the “gap” between your car’s actual cash value (ACV) and the balance remaining on your car loan or lease if the vehicle is stolen or totaled. It is particularly useful for drivers with financed vehicles who made a small down payment or have a car that depreciates quickly.
Required Car Insurance Coverage in New York
- $25,000 in bodily injury liability insurance per person ($50,000 per accident)
- $10,000 in property damage liability insurance
- $50,000 in personal injury protection (PIP) insurance
- $25,000 per person ($50,000 per accident) in uninsured motorist bodily injury coverage (UMBI)
In addition to the coverage dictated by state law, lenders and lessors usually require comprehensive, collision and gap insurance for full coverage.
To learn more, check out WalletHub’s guides to gap insurance and how much insurance you need in New York.
People also ask
How much is gap insurance in New York?
Gap insurance in New York costs an average of $2 to $30 per month, depending on whether you buy it from a dealership, a car manufacturer or your insurance provider. Gap insurance is only needed for one to three years, or until your vehicle is worth more than you still owe on your loan or lease.
Gap insurance covers the gap between a totaled vehicle’s actual cash value and the amount still owed on a loan...
read full answerHow much car insurance do I need in New York?
Drivers in New York need $25,000 of bodily injury liability insurance per person (up to $50,000 per accident) and $10,000 of property damage liability insurance. New York also requires personal injury protection (PIP) and uninsured motorist insurance. PIP covers medical expenses for you and your passengers after an accident, and UM replaces the liability coverage an at-fault driver should’ve had and pays for your costs up to your policy limits.
Here’s How Much Car Insurance Drivers Need in New York:
... read full answerWhat is considered a total loss in New York?
A car is considered a total loss in New York when the cost of repairs plus the salvage value is at least 75% of the vehicle’s actual cash value. Actual cash value refers to how much the car was worth immediately before the damage, while the salvage value is the car’s worth in its damaged state.
When a car is totaled according to the New York totaled car law, the policyholder will receive the car’s actual...
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