GAP insurance is about peace of mind. If writing a multi-thousand-dollar check for a car you can no longer drive sounds like a nightmare, the small annual fee is well worth it.
Instead, call your current auto insurance provider. Adding GAP coverage to your existing policy usually costs only . It’s the exact same protection for a fraction of the price. The Bottom Line should you buy gap insurance on new car
Dealerships often charge a flat fee of $500 to $1,000 for GAP insurance. GAP insurance is about peace of mind
You own the asset outright, so there’s no loan to "bridge." should you buy gap insurance on new car
GAP (Guaranteed Asset Protection) insurance covers the difference between your car’s market value and the remaining balance on your loan or lease.