Does gap insurance have an expiration date?

I have gap insurance on my loan. Does it expire at any point or is it good for my entire loan period?

Answer
Gap insurance provides coverage for the entire loan period or until you decide to cancel; it does not have an expiration date.
However, gap insurance becomes useless at the break-even point. That’s the point in time when the actual cash value of your car and the loan balance are equal. Gap insurance pays for the difference between the loan balance and the actual cash value of your car after an accident. So once these values are equal, paying for gap insurance is a waste of money.
If you’ve reached the break-even point and want to cancel your gap insurance, you should also review your car insurance policy to see if you need to change your coverage or shop around for a better price. Use the Jerry app to compare rates from top insurers in just a few minutes flat.”
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Emily Maracle
Answered on Aug 16, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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