Should You Buy Gap Insurance -

: You bought a luxury vehicle or a model known for losing value quickly.

: You rolled debt from a previous vehicle into your new car loan. should you buy gap insurance

: You put down less than 20% of the car's price. : You bought a luxury vehicle or a

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

: 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?

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.