Should You Buy Gap Insurance Access

: 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

: You put down less than 20% of the car's price.

: You drive significantly more than average, which accelerates the car's loss of value. When You Can Skip It You likely do not need gap insurance if: Should You Buy Gap Insurance for Your New Car? should you buy gap insurance

: You rolled debt from a previous vehicle into your new car loan.

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. : Gap insurance pays the remaining debt to

Guaranteed Asset Protection (GAP) insurance covers the "gap" between your car's and your outstanding loan or lease balance .

: Your repayment period is 60 months or longer . When You Can Skip It You likely do

: Most lease agreements benefit from or even require gap insurance because depreciation often outpaces your payments.