Consider gap insurance if any of the following apply to your financing or vehicle choice:
Guaranteed Asset Protection (GAP) insurance covers the "gap" between your car's and your outstanding loan or lease balance . should you buy gap insurance
: Most lease agreements benefit from or even require gap insurance because depreciation often outpaces your payments. Consider gap insurance if any of the following
: Your repayment period is 60 months or longer . : You bought a luxury vehicle or a
: You bought a luxury vehicle or a model known for losing value quickly.
: Gap insurance pays the remaining debt to your lender so you aren't stuck paying for a car you no longer own. When You Should Buy It
Buying gap insurance is a strategic financial decision that depends on whether you are "underwater" on your vehicle loan—meaning you owe more to your lender than the car is actually worth.