Should You Buy Gap Insurance -

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.

: You put down less than 20% of the car's price. should you buy gap insurance

: Your repayment period is 60 months or longer . Buying gap insurance is a strategic financial decision

Consider gap insurance if any of the following apply to your financing or vehicle choice: should you buy gap insurance

: If your car is stolen or totaled, standard comprehensive insurance only pays the current market value.

: You bought a luxury vehicle or a model known for losing value quickly.

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