PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Are gap and warranty insurance worth it?
I am thinking of getting a new car and want to make sure I don't pay for anything I don't need. I am reading some pretty bad stuff about warranties and gap coverage. Still, the Kia dealer is adamant that I need to have both.
Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Whether or not
gap insurance
is right for you depends on your credit score and how long you plan to keep your car. If you have good credit and can get a car loan with a very low interest rate, you may not need it. A low interest rate means you will probably not be upside-down on your loan and won’t use the coverage. If you plan to keep your car for only two to three years before upgrading again, your car won’t depreciate that much.
As far as the warranty goes, it can be a good idea. Investigate the cost of ownership for the vehicle you are interested in and see if getting a warranty makes financial sense.
Kia is known for their fantastic warranty plan, which is why the dealer is pushing it so hard. Also, he will get a bigger commission. But not all warranties are created equal, so other manufacturers may not have one that is as generous.”
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
