If you rolled negative equity from an old car loan into your new one, you definitely need coverage. When You Can Skip It You can probably pass on GAP insurance if:
You own the asset outright, so there’s no loan to "bridge." should you buy gap insurance on new car
Some luxury cars or EVs lose value faster than average, widening the potential gap. If you rolled negative equity from an old
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 Adding GAP coverage to your existing policy usually
Most lease agreements actually require GAP insurance (and many include it automatically).
GAP (Guaranteed Asset Protection) insurance covers the difference between your car’s market value and the remaining balance on your loan or lease.
If you put less than 20% down, you are likely "underwater" on your loan immediately.