No, Mitsubishi does not have gap insurance, unlike most other vehicle manufacturers. Fortunately, there are other ways to get gap insurance if you are buying a car from Mitsubishi and want the peace of mind that gap insurance offers.
Other Ways to Get Gap Insurance
You may be able to get gap insurance from a lender when financing a vehicle.
Some dealerships offer gap insurance.
Many major car insurance companies have gap insurance as an optional add-on to an existing car insurance policy.
Gap insurance can help pay the difference between what you owe on your loan or lease and your vehicle’s actual cash value (ACV) if your car is deemed a total loss. To learn more, check out WalletHub’s guide to gap insurance.
Gap insurance covers the difference between your auto loan and the car's depreciated value. In other words, gap insurance helps you pay off your auto loan or lease if you're no longer able to drive your car due to it being totaled or stolen.
It’s important to note that gap insurance only pays when your car is totaled or stolen, so you cannot file a gap claim if you simply can’t make your loan or lease payments. Additionally, most gap insurance policies will not pay your … read full answercollision or comprehensive deductible, if applicable.
Loan/Lease Payoff Insurance: Gap Insurance Alternative
Not all insurance companies offer gap insurance, but some offer loan/lease payoff insurance as an alternative. Loan/lease coverage is similar to gap insurance, except that it usually only pays up to 25% of the vehicle’s actual cash value toward the policyholder’s loan or lease balance, which might not be enough to cover the full amount owed.
If you’re curious about gap insurance or loan/lease coverage, you should check with your insurance company to see if they offer either.
Gap insurance costs around $3 per month when you add the coverage to your car insurance policy. When you purchase coverage from a car dealership instead, a gap insurance policy will cost a total of $400 to $700 in most cases.
A gap insurance policy covers the difference between what a leased or financed car is worth and how much the driver owes Like any other type of insurance, the cost of gap insurance varies depending on the car’s value and the driver’s risk characteristics, such as age and claims history.… read full answer
How to Get Cheap Gap Insurance
Some car leases include gap insurance at no added cost. But besides this free coverage, buying gap insurance from your normal car insurance company is usually the cheapest option. On average, gap insurance will only add around 5% to 6% to your comprehensive and collision cost. But since gap insurance is a relatively uncommon kind of coverage, not every insurance company offers it.
If your insurer does not provide gap insurance, it’s a good idea to compare quotes and see if it would be worth switching companies. If not, some companies offer standalone gap insurance policies. Also, if you are financing a car through a bank or credit union, these institutions will usually offer gap insurance upfront for anywhere from $200 to $700.
How Much Is Gap Insurance from a Dealer?
Dealerships are often the most expensive source of gap insurance, costing around $400 to $700 up front. If you are buying gap insurance that is rolled into your loan, bear in mind that you will be paying interest on the gap insurance premium as well as the rest of the loan’s balance. As a result, you’ll actually end up paying more than the original cost. This also comes into play wherever else you might get auto financing and gap insurance at the same time, including banks and credit unions.
However, price is not the only factor that should affect your decision of where to buy gap insurance. You should also consider how long your gap coverage will last and how long you will need it. Similarly, some gap insurance policies will pay your deductible, although many will not. And most gap insurance policies do not pay for anything you owe from a previous car loan.
You can usually get a gap insurance refund if your car was traded in, sold, or paid off early. Gap insurance refunds are not given simply because you never filed a gap insurance claim and they usually require policies to have been paid in full up front.
If you are cancelling within 30 days after the policy’s start date, you might be able to get a full refund, minus any cancellation fees. In other cases, only a partial refund may be possible. The details will depend on your policy and your state’s laws.… read full answer
When You Can Get a Gap Insurance Refund
You are paying off, selling, or trading in the covered car.
You are switching to a different gap insurance company.
Your loan balance is no longer more than the car’s actual value, though it’s best to leave a cushion of $1,000-$2,000.
If you need a gap insurance refund because you’re selling or trading in the car, be sure to wait until the car no longer legally belongs to you before canceling your gap insurance. Then, you will need to give the appropriate paperwork to your insurance provider, such as proof of sale or auto payoff letter.
Some gap insurance companies might also require an odometer verification showing the mileage on your car, which you can get from a dealership before you sell or trade in the vehicle.
Similarly, if you’re refinancing, wait to cancel your gap insurance until your previous loan is no longer in effect.
When You Cannot Get a Gap Insurance Refund
On the other hand, drivers cannot get a gap insurance refund if the insured car is declared a total loss before the policy’s expiration date. In this case, the gap insurance will pay for the difference between the car’s value and the loan balance, but drivers will not be eligible for a refund for the remaining months of coverage.
How Long Does It Take to Get a Gap Insurance Refund?
Gap insurance refunds usually take 4-6 weeks. Staying in contact with your gap insurance provider and promptly returning signed paperwork can expedite the process, though.
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