Guaranteed Asset Protection (GAP) insurance covers the "gap" between your car's and your outstanding loan or lease balance .
: You drive significantly more than average, which accelerates the car's loss of value. When You Can Skip It You likely do not need gap insurance if: Should You Buy Gap Insurance for Your New Car? 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. Guaranteed Asset Protection (GAP) insurance covers the "gap"
: Gap insurance pays the remaining debt to your lender so you aren't stuck paying for a car you no longer own. When You Should Buy It Buying gap insurance is a strategic financial decision
: You bought a luxury vehicle or a model known for losing value quickly.
: You put down less than 20% of the car's price.