Do You Need Gap Insurance When Buying A New Car Today

Most leasing companies require gap coverage to protect their asset. Many leases already include it, so check your contract first.

Loans stretching 60 to 84 months mean you build equity slowly, often falling behind the car's rapid early depreciation. do you need gap insurance when buying a new car

Luxury sedans, some electric vehicles, and SUVs often lose value faster than average. Most leasing companies require gap coverage to protect

You already have in the vehicle (the car is worth more than the loan balance). Where Should You Buy It? Luxury sedans, some electric vehicles, and SUVs often

If you put down less than 20% , you will likely have "negative equity" (owing more than the car's value) for the first few years.

While not required by law, gap insurance is a near-necessity in several common situations:

If that new car is stolen or totaled in an accident, standard insurance only pays the —what the car is worth today , not what you paid or what you still owe. Gap insurance (Guaranteed Asset Protection) bridges this divide by paying the difference between your insurance settlement and your remaining loan balance. Who Should Get Gap Insurance?