Does gap insurance work on a personal loan?
I was offered an unsecured loan to buy my vehicle. I want to get gap insurance with my insurance company, but I'm not sure if I'll be eligible with a personal loan. Should I try to find a different lender or type of loan?
Answer provided by
Answered on May 07, 2021
“You should first reach out to your current car insurance company to find out if you would be eligible for gap insurance with a personal loan.
In most situations, gap insurance is only available on vehicles with lienholders or lessors. Since an unsecured loan is considered a personal loan, you may not be eligible.
Check with the lender to see if they offer gap insurance on the loan. If they don’t, consider finding a different type of loan or lender.
Unsecured loans are usually reserved for people who have good credit and are low-risk. You most likely will be eligible for a different loan that will allow you to get gap insurance.
You can also shop around with various carriers to see if you’d be eligible with a personal loan. Even if your current carrier won’t sell gap insurance to you, another carrier may be willing to offer you coverage.”
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