Should You Buy Gap Insurance On New Car May 2026

Here is everything you need to know about GAP insurance and whether it’s a smart move for your wallet. What is GAP Insurance?

Standard auto insurance covers the "actual cash value" of your car. The problem? New cars lose value the second they leave the dealership. This creates a "gap" between what you owe the bank and what the car is actually worth. should you buy gap insurance on new car

You own the asset outright, so there’s no loan to "bridge." Here is everything you need to know about

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: should you buy gap insurance on new car