Does my used Mazda require gap insurance?

I am buying a used 2017 Mazda3. My loan balance is $14,000 after my down payment. The car is worth $16,000. Should I still get gap insurance?

Answer
“Whether you need gap insurance depends on the terms and conditions of your loan, as well as the actual cash value of your vehicle.
Used cars typically don’t depreciate as quickly as new vehicles. You are less likely to pay more than the vehicle is worth.
Given the balance of your loan currently, you shouldn’t need gap insurance. However, it’s worth taking some time to calculate the value of your vehicle with depreciation and the rate that you’ll be paying for your loan.
If it seems like you’ll never owe more on your loan than what your vehicle is worth, you can skip the gap insurance.
avatar
Emily Maracle
Answered on May 03, 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.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies