Do You Need Gap Insurance When Buying A New Car -

Do You Need Gap Insurance for Your New Car? The moment you drive a new car off the lot, its value drops. For many buyers, this creates a risky financial scenario: you might owe more on your loan than the car is actually worth.

While not required by law, gap insurance is a near-necessity in several common situations: do you need gap insurance when buying a new car

Most leasing companies require gap coverage to protect their asset. Many leases already include it, so check your contract first. Do You Need Gap Insurance for Your New Car

If you rolled debt from a previous car into your new loan, you are "upside down" from day one. When Can You Skip It? You likely don't need gap insurance if: You paid for the car in cash . You made a large down payment (typically 20% or more). While not required by law, gap insurance is

You have three main options, but they vary significantly in cost: What Is Gap Insurance and How Does It Work? - Progressive