Is Gap insurance for leased car necessary?

GAP insurance pays the difference between what your car is worth on the market (as it depreciates) and the amount still owed under the lease contract, or loan if you are financing a purchase. Before you purchase GAP insurance for a leased vehicle, read the contract carefully to see if GAP coverage is already included in the cost of the lease. It may not be phrased as "GAP" in the contract, it may be referred to as "lease coverage."  

Compare the price of a GAP policy purchased from your personal insurance company with that offered by the dealer. You may find your insurance company offers  coverage at a much lower cost.

Also, as you make lease payments over time, the gap between the lease value and actual value will gradually narrow. You may be able to drop the GAP policy after a few months, depending upon what kind of lease deal you negotiated.