Gap insurance is a crucial yet often overlooked form of protection for drivers. Understanding its meaning and implications can safeguard you from financial pitfalls in the event of an accident or theft. This guide delves into the intricacies of gap insurance, exploring its benefits, limitations, and various types to help you make informed decisions.
Gap insurance bridges the gap between the actual cash value (ACV) of your vehicle and the outstanding loan balance, providing financial coverage in situations where the ACV falls short of the amount owed. It’s particularly valuable for new or leased vehicles that depreciate rapidly, ensuring you’re not left with a substantial financial burden in the event of a total loss.
Gap Insurance Meaning
Gap insurance is a type of optional insurance that covers the difference between the actual cash value (ACV) of your vehicle and the amount you owe on your loan or lease.
Gap insurance can be helpful if your vehicle is totaled or stolen, as it can help you pay off the remaining balance on your loan or lease.
Difference Between Gap Insurance and Other Types of Insurance
Gap insurance is different from other types of insurance, such as collision insurance and comprehensive insurance, in that it only covers the difference between the ACV of your vehicle and the amount you owe on your loan or lease.
Collision insurance and comprehensive insurance cover the cost of repairing or replacing your vehicle, regardless of how much you owe on your loan or lease.
Benefits of Gap Insurance
Gap insurance is an optional coverage that can protect drivers financially in the event of an accident. It covers the difference between the actual cash value of a vehicle and the amount owed on the loan or lease. This can be especially helpful for drivers who have recently purchased a new car or who have a loan with a high interest rate.
There are a number of benefits to having gap insurance. First, it can help drivers avoid being upside down on their loan. If a car is totaled in an accident, the driver may still owe money on the loan even after the insurance company pays out the claim. Gap insurance can help cover the difference and prevent the driver from having to pay out of pocket.
Second, gap insurance can help drivers get a new car more quickly. If a car is totaled in an accident, the driver may have to wait for the insurance company to pay out the claim before they can buy a new car. Gap insurance can help cover the difference between the value of the totaled car and the cost of a new car, allowing the driver to get back on the road sooner.
Third, gap insurance can provide peace of mind. Knowing that they are financially protected in the event of an accident can give drivers peace of mind. They can drive with confidence, knowing that they will not be left with a large financial burden if their car is totaled.
Scenarios Where Gap Insurance Provides Coverage
Gap insurance can provide coverage in a number of different scenarios, including:
- When a car is totaled in an accident
- When a car is stolen and not recovered
- When a car is damaged beyond repair
Gap insurance can also provide coverage for leased vehicles. If a leased vehicle is totaled, the driver may be responsible for the remaining balance on the lease. Gap insurance can help cover the difference and prevent the driver from having to pay out of pocket.
Key Benefits of Gap Insurance
The key benefits of gap insurance include:
| Benefit | Description |
|---|---|
| Protects drivers from being upside down on their loan | Gap insurance covers the difference between the actual cash value of a vehicle and the amount owed on the loan or lease. This can help drivers avoid having to pay out of pocket if their car is totaled in an accident. |
| Helps drivers get a new car more quickly | Gap insurance can help drivers get a new car more quickly by covering the difference between the value of the totaled car and the cost of a new car. |
| Provides peace of mind | Knowing that they are financially protected in the event of an accident can give drivers peace of mind. They can drive with confidence, knowing that they will not be left with a large financial burden if their car is totaled. |
Drawbacks of Gap Insurance
There are a few potential drawbacks to gap insurance, including:
- It can be expensive. Gap insurance can add to the cost of a car loan or lease.
- It may not be necessary. Gap insurance is only necessary if the driver is concerned about being upside down on their loan or lease.
- It may not cover all types of losses. Gap insurance may not cover all types of losses, such as damage to personal property or medical expenses.
Overall, gap insurance can be a valuable coverage for drivers who are concerned about being upside down on their loan or lease. It can provide financial protection and peace of mind in the event of an accident.
When to Consider Gap Insurance
Gap insurance is a good option for drivers who:
* Leased a vehicle: If you lease a car, gap insurance is typically required by the leasing company. This is because the lessor wants to protect its investment in the vehicle in case it is totaled or stolen.
* Financed a vehicle with a high loan-to-value (LTV) ratio: If you financed your vehicle with a high LTV ratio, you may have a gap between what you owe on the loan and the actual cash value (ACV) of the vehicle. Gap insurance can help cover this gap if your vehicle is totaled or stolen.
* Purchased a new vehicle: New vehicles depreciate quickly, so there is a greater chance that you will owe more on the loan than the vehicle is worth. Gap insurance can help protect you from this loss if your vehicle is totaled or stolen.
* Drive a vehicle in an area with high accident rates: If you live in an area with high accident rates, you are more likely to be involved in an accident that totals your vehicle. Gap insurance can help protect you from the financial burden of having to pay off the remaining balance on your loan if your vehicle is totaled.
Factors to Consider When Deciding Whether or Not to Purchase Gap Insurance
There are several factors to consider when deciding whether or not to purchase gap insurance, including:
* The cost of gap insurance: Gap insurance is typically relatively inexpensive, but the cost will vary depending on the value of your vehicle and the terms of your loan.
* The likelihood that you will need gap insurance: If you are leasing a vehicle or have a high LTV ratio, you are more likely to need gap insurance. However, if you have a low LTV ratio and drive a vehicle in an area with low accident rates, you may not need gap insurance.
* Your financial situation: If you have a large emergency fund or are able to make large payments on your loan, you may not need gap insurance. However, if you are on a tight budget, gap insurance can provide you with peace of mind in case your vehicle is totaled or stolen.
How to Purchase Gap Insurance
Gap insurance can be purchased through various channels, each with its advantages and disadvantages. Here are the primary ways to obtain gap insurance:
Through Car Dealerships
Many car dealerships offer gap insurance as an add-on to the financing agreement. The advantage of purchasing gap insurance through the dealership is convenience and the ability to roll the cost into the monthly loan payments. However, dealership-purchased gap insurance is often more expensive than other options.
Through Insurance Companies
Gap insurance can also be purchased directly from insurance companies. This method provides more flexibility in terms of coverage and cost. However, it may require a separate application and underwriting process.
Through Credit Unions
Some credit unions offer gap insurance as a member benefit. This can be a cost-effective option, but it may not be available to all borrowers.
Adding Gap Insurance to an Existing Policy
Gap insurance can also be added to an existing auto insurance policy. This involves contacting the insurance company and providing the necessary information, such as the vehicle’s value and loan amount. The insurance company will then determine if you qualify for gap coverage and provide you with a quote.
Comparison Table
The following table compares the costs and benefits of purchasing gap insurance from different sources:
| Source | Cost | Convenience | Flexibility |
|---|---|---|---|
| Car Dealerships | Higher | Convenient | Limited |
| Insurance Companies | Variable | Moderate | High |
| Credit Unions | Lower | Limited | Moderate |
Frequently Asked Questions (FAQs)
Here are some frequently asked questions about gap insurance:
- Am I eligible for gap insurance? Gap insurance is typically available to borrowers who have financed their vehicle. However, some lenders may have additional eligibility requirements.
- What are the coverage limits for gap insurance? Gap insurance coverage limits vary depending on the policy. Most policies cover the difference between the actual cash value of the vehicle and the loan balance, up to a certain limit.
- How do I file a claim for gap insurance? To file a claim for gap insurance, you will need to contact your insurance company and provide documentation of the accident or theft. The insurance company will then investigate the claim and determine if you are eligible for benefits.
Cost of Gap Insurance
The cost of gap insurance varies depending on several factors, including the make and model of your car, the amount of coverage you choose, and the deductible you select. Generally, gap insurance costs between $500 and $1,000 per year.
Factors Affecting Cost
- Make and model of car: The cost of gap insurance is typically higher for luxury cars and sports cars than it is for economy cars.
- Amount of coverage: The more coverage you choose, the higher the cost of gap insurance will be.
- Deductible: The deductible is the amount you pay out of pocket before gap insurance kicks in. A higher deductible will result in a lower premium.
Gap Insurance Coverage
Gap insurance is a type of optional auto insurance that helps cover the difference between the actual cash value (ACV) of your car and the amount you owe on your loan or lease. ACV is the current market value of your car, which is typically less than the amount you owe on your loan or lease, especially if you have a new car. Gap insurance can help you avoid being upside down on your loan or lease if your car is totaled or stolen.
Limitations and Exclusions of Gap Insurance Coverage
Gap insurance does not cover all vehicles or situations. Some of the limitations and exclusions of gap insurance coverage include:
- Vehicles with high mileage or poor condition: Gap insurance is typically not available for vehicles with high mileage or poor condition.
- Vehicles that are not financed or leased: Gap insurance is only available for vehicles that are financed or leased.
- Coverage for vehicles that are not purchased or leased in the United States: Gap insurance is typically not available for vehicles that are not purchased or leased in the United States.
Scenarios Where Gap Insurance Would Be Beneficial
Gap insurance can be beneficial in a number of situations, including:
- If you have a new car: New cars depreciate quickly, so you may be upside down on your loan or lease if your car is totaled or stolen.
- If you have a long loan term: If you have a long loan term, you may be upside down on your loan for several years, even if you make all of your payments on time.
- If you have a high deductible: If you have a high deductible on your auto insurance policy, you may not be able to afford to replace your car if it is totaled or stolen.
How to Determine If Gap Insurance Is Right for You
Gap insurance is not right for everyone. Here are a few things to consider when deciding if gap insurance is right for you:
- The value of your car: If your car is worth less than the amount you owe on your loan or lease, gap insurance may be a good idea.
- The length of your loan term: If you have a long loan term, gap insurance may be a good idea.
- Your deductible: If you have a high deductible on your auto insurance policy, gap insurance may be a good idea.
Types of Gap Insurance
There are three main types of gap insurance:
- Guaranteed Asset Protection (GAP): GAP insurance covers the difference between the ACV of your car and the amount you owe on your loan or lease, up to the actual cash value of the car.
- Loan/Lease Payoff Coverage: Loan/lease payoff coverage covers the difference between the ACV of your car and the amount you owe on your loan or lease, up to the amount of your loan or lease.
- Extended Replacement Value (ERV): ERV coverage covers the difference between the ACV of your car and the amount you owe on your loan or lease, up to the cost of a new car of the same make and model.
| Type of Gap Insurance | Coverage | Benefits | Drawbacks |
|---|---|---|---|
| Guaranteed Asset Protection (GAP) | Covers the difference between the ACV of your car and the amount you owe on your loan or lease, up to the actual cash value of the car. | Relatively inexpensive Easy to understand |
Does not cover the full amount of your loan or lease if your car is totaled or stolen |
| Loan/Lease Payoff Coverage | Covers the difference between the ACV of your car and the amount you owe on your loan or lease, up to the amount of your loan or lease. | Covers the full amount of your loan or lease if your car is totaled or stolen | More expensive than GAP insurance May not be available for all vehicles |
| Extended Replacement Value (ERV) | Covers the difference between the ACV of your car and the amount you owe on your loan or lease, up to the cost of a new car of the same make and model. | Covers the full cost of a new car if your car is totaled or stolen | Most expensive type of gap insurance May not be available for all vehicles |
How to File a Gap Insurance Claim
If your car is totaled or stolen, you should file a claim with your gap insurance company as soon as possible. You will need to provide the company with the following information:
- Your name and contact information
- Your policy number
- The date and location of the accident or theft
- The make, model, and year of your car
- The VIN of your car
- The amount of your loan or lease
- The ACV of your car
Resources for Obtaining Gap Insurance
Gap insurance can be purchased from a number of different sources, including:
- Your auto insurance company
- Your car dealership
- A third-party gap insurance provider
Gap Insurance Providers
Gap insurance is offered by a variety of insurance companies. Each provider has its own coverage options, deductibles, premiums, and customer service ratings. It’s important to compare the different providers to find the best coverage for your needs.
Some of the major providers of gap insurance include:
- Allstate
- Nationwide
- Progressive
- State Farm
- USAA
Here is a table summarizing the key features of each provider:
| Provider | Coverage Options | Deductibles | Premiums | Customer Service Ratings |
|---|---|---|---|---|
| Allstate | Up to 125% of the vehicle’s value | $0, $250, $500 | Varies by state and coverage level | 4.5 out of 5 stars from J.D. Power |
| Nationwide | Up to 125% of the vehicle’s value | $0, $250, $500 | Varies by state and coverage level | 4.2 out of 5 stars from J.D. Power |
| Progressive | Up to 125% of the vehicle’s value | $0, $250, $500 | Varies by state and coverage level | 4.3 out of 5 stars from J.D. Power |
| State Farm | Up to 125% of the vehicle’s value | $0, $250, $500 | Varies by state and coverage level | 4.4 out of 5 stars from J.D. Power |
| USAA | Up to 125% of the vehicle’s value | $0, $250, $500 | Varies by state and coverage level | 4.6 out of 5 stars from J.D. Power |
Each provider has its own strengths and weaknesses. Allstate has a wide range of coverage options and deductibles, but its premiums can be higher than other providers. Nationwide has a good reputation for customer service, but its coverage options are more limited. Progressive offers competitive premiums, but its customer service ratings are lower than other providers. State Farm has a strong reputation for financial stability, but its gap insurance coverage is only available in certain states. USAA offers gap insurance to military members and their families, but it is not available to the general public.
The best gap insurance provider for you will depend on your individual needs and budget. If you are looking for the most comprehensive coverage, Allstate is a good option. If you are looking for a provider with good customer service, Nationwide is a good choice. If you are looking for a provider with competitive premiums, Progressive is a good option. If you are a military member or family member, USAA is a good option.
Gap Insurance vs. Other Coverage Options
Gap insurance provides coverage for the difference between the actual cash value of a vehicle and the amount owed on the loan or lease. Other coverage options, such as extended warranties and mechanical breakdown insurance, offer different types of protection.
Extended Warranties
Extended warranties extend the manufacturer’s warranty coverage for a specific period of time or mileage. They typically cover repairs for major components, such as the engine, transmission, and electrical system.
Advantages of Extended Warranties
– Provides peace of mind by extending coverage beyond the manufacturer’s warranty
– Can cover major repairs that would otherwise be expensive
– May be transferable to a new owner, increasing the resale value of the vehicle
Disadvantages of Extended Warranties
– Can be expensive, especially for vehicles with high mileage
– May not cover all repairs, such as wear-and-tear items
– May have deductibles that apply to covered repairs
Mechanical Breakdown Insurance
Mechanical breakdown insurance (MBI) is similar to extended warranties but provides coverage for a wider range of repairs. It typically covers both major and minor repairs, including wear-and-tear items.
Advantages of Mechanical Breakdown Insurance
– Provides comprehensive coverage for a wide range of repairs
– May cover older vehicles or vehicles with high mileage
– May have lower deductibles than extended warranties
Disadvantages of Mechanical Breakdown Insurance
– Can be more expensive than extended warranties
– May not be as widely accepted by repair shops as extended warranties
– May have waiting periods before coverage begins
Comparison of Gap Insurance, Extended Warranties, and Mechanical Breakdown Insurance
Gap insurance is specifically designed to cover the difference between the actual cash value of a vehicle and the amount owed on the loan or lease. Extended warranties and mechanical breakdown insurance provide coverage for repairs, but they do not cover the gap between the actual cash value and the amount owed.
The best coverage option for a particular individual will depend on their specific needs and financial situation. Gap insurance is a good option for those who are concerned about owing more on their vehicle than it is worth in the event of an accident or theft. Extended warranties and mechanical breakdown insurance are good options for those who want to protect themselves from the cost of major repairs.
Gap Insurance for Leased Vehicles
Gap insurance is a type of auto insurance that covers the difference between the actual cash value of your car and the amount you still owe on your lease or loan. This can be important for leased vehicles because the actual cash value of a car typically decreases faster than the amount you owe on the lease.
If you total your leased car or it is stolen, your regular auto insurance policy will only pay up to the actual cash value of the car. If the actual cash value is less than the amount you still owe on the lease, you will be responsible for paying the difference. This can be a significant financial burden.
Gap insurance can help you avoid this financial hardship by covering the difference between the actual cash value of your car and the amount you still owe on the lease. This can give you peace of mind knowing that you will not be responsible for paying off the remaining balance on your lease if your car is totaled or stolen.
Considerations for Gap Insurance on Leased Vehicles
There are a few things to consider when purchasing gap insurance for a leased vehicle.
- The cost of gap insurance. Gap insurance is typically less expensive than collision and comprehensive insurance, but it can still add to your monthly payment. Be sure to compare the cost of gap insurance from different insurance companies before you purchase a policy.
- The deductible. Most gap insurance policies have a deductible, which is the amount you will have to pay out of pocket before the insurance company will start to cover the difference between the actual cash value of your car and the amount you still owe on the lease. Be sure to choose a deductible that you can afford.
- The coverage period. Gap insurance policies typically cover the length of your lease. However, you may be able to purchase a policy that covers a shorter or longer period of time.
Benefits of Gap Insurance for Leased Vehicles
There are several benefits to purchasing gap insurance for a leased vehicle.
- Peace of mind. Gap insurance can give you peace of mind knowing that you will not be responsible for paying off the remaining balance on your lease if your car is totaled or stolen.
- Financial protection. Gap insurance can protect you from financial hardship if your car is totaled or stolen. This can be especially important if you have a long lease term or if you have a high deductible on your regular auto insurance policy.
- Convenience. Gap insurance is typically easy to purchase and can be added to your existing auto insurance policy.
Specific Examples of How Gap Insurance Can Protect Leased Drivers from Financial Hardship
Here are a few specific examples of how gap insurance can protect leased drivers from financial hardship.
- Example 1: You lease a new car for $30,000. After two years, you still owe $25,000 on the lease. Your car is totaled in an accident, and the insurance company determines that the actual cash value of the car is $20,000. Without gap insurance, you would be responsible for paying the difference between the actual cash value of the car and the amount you still owe on the lease, which is $5,000.
- Example 2: You lease a new car for $25,000. After one year, you still owe $22,000 on the lease. Your car is stolen, and the insurance company determines that the actual cash value of the car is $18,000. Without gap insurance, you would be responsible for paying the difference between the actual cash value of the car and the amount you still owe on the lease, which is $4,000.
Table Comparing the Different Types of Gap Insurance Coverage Available for Leased Vehicles
There are two main types of gap insurance coverage available for leased vehicles:
| Type of Coverage | Description |
|---|---|
| Lease gap insurance | This type of gap insurance covers the difference between the actual cash value of your car and the amount you still owe on your lease. |
| Loan/lease gap insurance | This type of gap insurance covers the difference between the actual cash value of your car and the amount you still owe on your loan or lease. |
Potential Drawbacks of Gap Insurance
There are a few potential drawbacks to purchasing gap insurance.
- The cost. Gap insurance can add to your monthly payment. Be sure to compare the cost of gap insurance from different insurance companies before you purchase a policy.
- The deductible. Most gap insurance policies have a deductible, which is the amount you will have to pay out of pocket before the insurance company will start to cover the difference between the actual cash value of your car and the amount you still owe on the lease. Be sure to choose a deductible that you can afford.
- The coverage period. Gap insurance policies typically cover the length of your lease. However, you may be able to purchase a policy that covers a shorter or longer period of time.
How to Avoid the Drawbacks of Gap Insurance
There are a few things you can do to avoid the drawbacks of gap insurance.
- Shop around for the best price. Be sure to compare the cost of gap insurance from different insurance companies before you purchase a policy.
- Choose a deductible that you can afford. The deductible is the amount you will have to pay out of pocket before the insurance company will start to cover the difference between the actual cash value of your car and the amount you still owe on the lease. Be sure to choose a deductible that you can afford.
- Purchase a policy that covers the length of your lease. Gap insurance policies typically cover the length of your lease. However, you may be able to purchase a policy that covers a shorter or longer period of time.
Conclusion
Gap insurance can be a valuable investment for leased drivers. It can protect you from financial hardship if your car is totaled or stolen. Be sure to compare the cost of gap insurance from different insurance companies before you purchase a policy.
Gap Insurance for Financed Vehicles
Gap insurance is particularly crucial for financed vehicles. When a financed vehicle is totaled or stolen, the insurance company will typically only pay the actual cash value (ACV) of the vehicle, which may be less than the amount owed on the loan. This is where gap insurance comes into play, covering the difference between the ACV and the loan balance.
Considerations for Gap Insurance on Financed Vehicles
- Loan-to-Value Ratio (LTV): A high LTV, where the loan amount is close to or exceeds the vehicle’s value, makes gap insurance more essential.
- Length of Loan Term: Longer loan terms increase the likelihood of a gap between the ACV and the loan balance.
- Depreciation: Vehicles depreciate rapidly in the first few years, making gap insurance especially valuable during this period.
Pros and Cons of Gap Insurance
Gap insurance is an optional type of insurance that covers the difference between the actual cash value of your car and the amount you owe on your loan or lease. This can be helpful if your car is totaled or stolen and you still owe money on it.
There are several advantages to gap insurance:
* It can help you avoid being upside down on your loan or lease, which means you owe more than your car is worth.
* It can give you peace of mind knowing that you’re covered in the event of a total loss.
* It can be relatively inexpensive, especially if you purchase it when you buy or lease your car.
However, there are also some disadvantages to gap insurance:
* It may not be necessary if you have a low loan-to-value ratio.
* It may not cover all of the costs associated with a total loss, such as your deductible and any fees charged by your lender.
* It may not be available for all types of vehicles or loans.
Ultimately, the decision of whether or not to purchase gap insurance is a personal one. You should weigh the pros and cons carefully before making a decision.
Examples of Gap Insurance Claims
Gap insurance can be a valuable asset for drivers who find themselves in situations where they owe more on their car loan than the car is worth. Here are a few real-life examples of how gap insurance has helped drivers in these situations:
Total Loss Accident
- Claim Scenario: A driver was involved in a car accident that totaled their vehicle. The driver owed $25,000 on their car loan, but the insurance company only paid out $20,000 for the value of the car.
- How Gap Insurance Helped: The driver’s gap insurance covered the $5,000 difference between the amount owed on the loan and the amount paid out by the insurance company.
Theft
- Claim Scenario: A driver’s car was stolen and never recovered. The driver owed $18,000 on their car loan, but the insurance company only paid out $15,000 for the value of the car.
- How Gap Insurance Helped: The driver’s gap insurance covered the $3,000 difference between the amount owed on the loan and the amount paid out by the insurance company.
Financial Hardship
- Claim Scenario: A driver lost their job and could no longer afford to make their car payments. The driver owed $12,000 on their car loan, but the car was only worth $10,000.
- How Gap Insurance Helped: The driver’s gap insurance covered the $2,000 difference between the amount owed on the loan and the amount the car could be sold for.
These are just a few examples of how gap insurance can help drivers in financial distress. Gap insurance can provide peace of mind knowing that you are protected from owing more on your car loan than the car is worth.
Frequently Asked Questions About Gap Insurance
Gap insurance is a type of optional auto insurance that covers the difference between the actual cash value (ACV) of your car and the amount you still owe on your loan or lease. This can be helpful if your car is totaled or stolen and the ACV is less than the amount you owe.
Here are some frequently asked questions about gap insurance:
What is gap insurance?
Gap insurance is a type of optional auto insurance that covers the difference between the actual cash value (ACV) of your car and the amount you still owe on your loan or lease. This can be helpful if your car is totaled or stolen and the ACV is less than the amount you owe.
How does gap insurance work?
Gap insurance works by paying the difference between the ACV of your car and the amount you still owe on your loan or lease. This can help you avoid being upside down on your loan, which means you owe more than your car is worth.
Who needs gap insurance?
Gap insurance is a good idea for anyone who has a new car or a car that is worth less than the amount they owe on their loan or lease. This is because new cars depreciate quickly, and the ACV of your car may be less than the amount you owe after just a few years.
How much does gap insurance cost?
The cost of gap insurance varies depending on the insurance company, the value of your car, and the length of your loan or lease. However, it is typically relatively inexpensive, costing around $10-$20 per month.
Is gap insurance worth it?
Whether or not gap insurance is worth it depends on your individual circumstances. If you have a new car or a car that is worth less than the amount you owe on your loan or lease, then gap insurance may be a good idea. However, if you have an older car or a car that is worth more than the amount you owe, then gap insurance may not be necessary.
Tips for Finding Affordable Gap Insurance
Gap insurance can be a valuable financial safety net, but it’s important to shop around for the best deal. Here are a few tips to help you find affordable gap insurance:
- Compare quotes from multiple insurers. Not all insurers offer gap insurance, and those that do may have different rates. It’s important to compare quotes from several different insurers to find the best deal.
- Ask about discounts. Many insurers offer discounts for gap insurance, such as discounts for bundling gap insurance with other types of insurance, such as auto insurance or homeowners insurance.
- Consider the length of your loan term. Gap insurance premiums are typically based on the length of your loan term. If you have a shorter loan term, you will pay less for gap insurance.
- Consider the value of your vehicle. Gap insurance premiums are also based on the value of your vehicle. If you have a less expensive vehicle, you will pay less for gap insurance.
- Shop around online. There are a number of online insurance marketplaces that allow you to compare quotes from multiple insurers. This can be a convenient way to find the best deal on gap insurance.