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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?
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“
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.”View full answer
- Gregory R.
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