Should You Buy Gap Insurance May 2026

: Your repayment period is 60 months or longer .

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. should you buy gap insurance

: You put down less than 20% of the car's price. : Your repayment period is 60 months or longer

: Most lease agreements benefit from or even require gap insurance because depreciation often outpaces your payments. should you buy gap insurance

: You rolled debt from a previous vehicle into your new car loan.

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

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