How Do I Buy Gap Insurance May 2026

: You add it as an "endorsement" to your existing policy. It is often the cheapest route because you avoid interest and dealer markups.

: Because the fee is financed, you will pay interest on the insurance itself, making it significantly more expensive over the life of the loan. Banks and Credit Unions Cost : Usually $200–$700 . how do i buy gap insurance

Buying gap insurance can save you thousands if your vehicle is totaled, as it covers the "gap" between what you owe on your loan and the car's actual cash value. To get the best deal, compare these options before you drive off the lot. Auto Insurance Provider (Best Value) Cost : Typically $20–$100 per year . : You add it as an "endorsement" to your existing policy

: Call your agent or check your online account. This is usually the quickest and cheapest way to add coverage. Banks and Credit Unions Cost : Usually $200–$700

: Some comprehensive insurance plans already include "new car replacement" or similar coverage, making gap insurance unnecessary.

: Use a tool like Kelley Blue Book to estimate your car's value versus your loan balance. If you owe 20% or more than the car is worth, gap insurance is highly recommended.