Melissa Sherrard, Car Insurance Writer
@melissa_sherrard
Gap insurance in New York works the same way as gap insurance in the rest of the U.S., by paying the balance remaining on a car loan or lease contract after a liability, comprehensive, or collision policy pays out the actual cash value of a totaled vehicle. The state of New York doesn't require any driver to carry gap insurance. However, certain lenders in New York may require customers to carry gap insurance - short for guaranteed asset (or auto) protection insurance - if they get a car loan or lease.
Dozens of companies, including banks and dealerships, offer gap insurance in New York. While you should take your time deciding which one is right for you, you can also have confidence in the fact that gap insurance works the same way in New York as in the rest of the country.
Best Gap Insurance Companies in New York
It's worth noting that gap coverage is usually cheaper to purchase from an insurance company than a dealership. For more information, check out WalletHub's complete guide to gap insurance.
People also ask
Is gap insurance worth it?
Gap insurance is worth the money whenever you owe more on your car loan or lease than the car is worth. For example, if you paid a small down payment on your car, your loan term is 4-5 years or your car will depreciate quickly, you should consider getting gap insurance.
Gap insurance is never mandated by state law, and few lenders or lessors require it, so the decision to buy it depends on...
read full answerDo I need gap insurance if I have full coverage?
Yes, you need gap insurance if you have full coverage and still owe money on a car loan or lease. Gap insurance is needed even if you have full coverage because full coverage does not cover the difference between what you owe on a loan/lease and the car’s actual cash value, like gap insurance does.
When You Need Gap Insurance If You Have Full Coverage
- You’re financing/leasing a new vehicle for a...
How long does it take for gap insurance to pay?
Gap insurance takes 5-45 days to pay the policyholder after a claim is filed. For drivers to receive a gap insurance payout, the car first needs to be declared a total loss, and the insurance company needs to accept the claim.
State laws also dictate how long an insurance company has to pay for a claim. For example, insurers in Texas must pay within five days after accepting a claim. Some other states, like...
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