Do I need to purchase gap insurance on a 2010 Ford Escape that I'm buying?

I'm going to be financing a 2010 Ford Escape and the bank is offering me gap insurance. It would cost $700 to $1,500, depending on the length of my loan. I have a regular car insurance policy and agreed to the bank's loan protection plan. Is it worth it or necessary for me to buy gap insurance?

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Emily Maracle
Answered on Apr 20, 2021
Gap insurance can be helpful, but based on the age of your vehicle, it may not be necessary.
Gap insurance pays for the difference between what you owe on your loan and the actual cash value of your vehicle. Since you are purchasing an older, used vehicle, you most likely won’t owe more than the value of the car.
If you decide to go ahead and get gap insurance anyway, many insurance companies offer gap insurance as an add-on to a car insurance policy. This can be an affordable way to buy gap insurance without adding it to your loan.
You can shop around with insurance companies to see which ones offer gap insurance. If you’d rather leave the hard work of gathering quotes to someone else, use Jerry. This free app can collect quotes from up to 45 top insurance companies in seconds! “
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