Will gap insurance cover a totaled car without insurance? This question is about Car Insurance

Will gap insurance cover a totaled car without insurance?

This question is about Car Insurance

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@WalletHub • 02/15/21 This answer was first published on 02/15/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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No, gap insurance will not cover a totaled car without insurance unless the gap policy specifically allows it, which is highly unlikely. In most cases, you cannot purchase gap insurance or file a gap insurance claim if you don’t have collision or comprehensive coverage.

If you purchased gap insurance from a dealer but have allowed your car insurance to lapse, you are likely violating your contract. Gap insurance is really insurance for your loan or lease, not your car, and any reputable lender or lessor will require you to maintain full coverage on a leased or financed vehicle.

For more information, check out WalletHub’s guide to gap insurance.

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...

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How do I know if I have gap insurance?

To find out whether you have gap insurance, check your existing car insurance policy and the terms of your loan or lease. Drivers can get gap insurance through their insurance company as an add-on or separately through their auto lender, so it’s important to look for gap coverage in the list of coverages provided by both.

How To Know If You Have Gap Insurance

1. Check with your car insurance company.

You...

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Do 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...

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