Services
PriceProtect™
DriveShield™
GarageGuard™
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Home Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Recent Studies
Comprehensive Data Reports
Reviews
About
FAQ
MenuIcon
BACK

What can happen if I don't have gap insurance on my financed car?

I declined gap insurance through my lender. What would happen if I get into an accident without it?

avatar
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Without
gap insurance
 on your financed car, you’re responsible for paying the difference between your car loan balance and the actual cash value of the vehicle if you’re at fault in an accident.
For example, if you owe $15,000 on your loan, your car is worth $12,000, and you get into an accident, the car insurance company would only give you a check for $12,000, provided that you have
collision insurance
. The extra $3,000 would come out of your pocket. If you have gap insurance, the policy would pay for this $3,000 shortfall.
If you don’t have gap insurance, you have to pay the remaining balance of your loan after your insurance pays out the actual cash value of your vehicle. If you don’t have an emergency fund to cover that difference, gap insurance is a smart choice.
Interested in getting gap insurance or changing your car insurance policy? Download the
Jerry
 app to compare rates between top insurers so you’re always getting the best price possible.”
MORE:
When Your Car is Totaled and You Don’t Have Gap Insurance
Car LoanGap InsuranceCar Loans
View full answer 
Jerry user testimonial avatar
rating primary
“My experience with Jerry has been absolutely incredible. It took my car insurance from about $400/month to about $80. The entire experience is seamless.” - Gregory R.
Lower my car insurance too
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

Find insurance savings

You Might Also Be Interested

card cover

When Your Car is Totaled and You Don’t Have Gap Insurance

If your car is totaled and you don’t have gap insurance, you’ll be responsible for paying any remaining loan balance not covered by the insurance payout.
avatar
Pat Roache
card cover

When Does Gap Insurance Not Pay?

Gap insurance does not pay for car damages if your vehicle is not deemed a total loss or if you have not kept up on your payments.
avatar
Jacqulyn Graber
card cover

10 Reasons Gap Insurance Might Not Pay

Gap insurance may not pay if your vehicle was a partial loss, your policy is lapsed, or you were driving under the influence.
avatar
Amy Bobinger

Read Advice From Car Experts At Jerry

card cover

How To Reset the Anti-Theft System on a Ford Focus

To reset the Ford Focus anti-theft system, you’ll have to get your car to properly detect your coded key. Click here for how!
avatar
Macy Fouse
card cover

Are There Taxes on Winning a Car?

The taxes on a car you’ve won will be roughly one-third of the car’s value, but you can lower the amount you owe by teaming up with a tax expert.
avatar
Samuel Todd
card cover

The Most Common 2010 Jeep Grand Cherokee Problems

The 2010 Jeep Grand Cherokee had a lot of issues, resulting in 114 complaints and 5 recalls. Learn more here.
avatar
Rob Shapiro

What Others Are Asking

How do I play music via Bluetooth in a 2009 Ford Fiesta?
I just snagged a sweet used Ford Fiesta after my Focus was stolen from my garage! I like to have some good tunes while I drive, but this Fiesta is pretty old. How do I play music via Bluetooth in a 2009 Ford Fiesta?
avatar
Jason Tushinski
What do I do if my Mazda MPV sliding door won’t open?
My Mazda MPV power sliding door has stopped working. It seems like no matter what I do, it won’t open. It was working just fine the last time I drove it. What should I do?
avatar
Sarah Gray
Where is the 1995 Toyota Corolla OBD port location?
I’m a relatively new driver, and I inherited a 1995 Toyota Corolla. I’m determined to make it last for as long as possible, but my check engine light recently came on and I’m not sure how to scan the diagnostic code for this car. Where is the OBD port located?
avatar
Macy Fouse
Browse All Questions

Browse More Content

Car Repair Resources

Insurance for Your Car

Insurance in Your State

    Insurance In Your City

    Easiest way to compare and buy car insurance

    √
    No long forms
    √
    No spam or unwanted phone calls
    √
    Quotes from top insurance companies
    Find insurance savings
    Car Insurance by Make
    Audi
    BMW
    Dodge
    Ford
    GMC
    Honda
    Hyundai
    Jeep
    Kia
    Lexus
    Mercedes-Benz
    Mitsubishi
    Subaru
    Tesla
    Toyota
    View all
    Car Insurance by Model
    Chevrolet Silverado
    Chevrolet Malibu
    Ford Escape
    GMC Sierra
    Honda Accord
    Honda Civic
    Hyundai Tucson
    Jeep Cherokee
    Jeep Wrangler
    Kia Forte
    Mazda 3
    Nissan Altima
    Subaru Outback
    Subaru Crosstrek
    Toyota Camry
    Toyota Corolla
    Toyota Tacoma
    Toyota Highlander
    Toyota Rav4
    Volkswagen Jetta
    View all
    Car Insurance by State
    AL
    AZ
    AR
    CA
    CO
    CT
    DE
    FL
    GA
    ID
    IL
    IN
    IA
    KS
    KY
    LA
    ME
    MD
    MA
    MI
    MN
    MS
    MO
    MT
    NE
    NV
    NH
    NJ
    NM
    NY
    NC
    ND
    OH
    OK
    OR
    PA
    RI
    SC
    SD
    TN
    TX
    UT
    VT
    VA
    WA
    WV
    WI
    WY
    Car Insurance by City
    Austin, TX
    Boston, MA
    Charlotte, NC
    Chicago, IL
    Columbus, OH
    Dallas, TX
    Denver, CO
    Houston, TX
    Indianapolis, IN
    Jacksonville, FL
    Las Vegas, NV
    Los Angeles, CA
    Nashville, TN
    New York, NY
    Philadelphia, PA
    Phoenix, AZ
    Portland, OR
    San Antonio, TX
    San Francisco, CA
    Seattle, WA
    View all
    Car Loan by Make
    Audi
    BMW
    Chevrolet
    Ford
    GMC
    Honda
    Hyundai
    Kia
    Lexus
    Nissan
    Mercedes-Benz
    Subaru
    Tesla
    Toyota
    View all
    Car Insurance by Company
    AAA
    Allstate
    Aspire Advantage
    Assurance America
    Bristol West
    Commonwealth
    Dairyland
    Encompass
    Infinity
    Kemper
    Mapfre
    Mercury
    National General
    Nationwide
    Plymouth Rock
    Progressive
    Safeco
    State Auto
    Travelers
    Car Loan by State
    AL
    AZ
    AR
    CA
    CO
    CT
    DE
    FL
    GA
    ID
    IL
    IN
    IA
    KS
    KY
    LA
    ME
    MD
    MA
    MI
    MN
    MS
    MO
    MT
    NE
    NV
    NH
    NJ
    NM
    NY
    NC
    ND
    OH
    OK
    OR
    PA
    RI
    SC
    SD
    TN
    TX
    UT
    VT
    VA
    WA
    WV
    WI
    WY
    Car Repair by Service
    AC Compressor Replacement Cost
    Battery Replacement Cost
    Fuel Injector Replacement Cost
    Fuel Pump Replacement Cost
    Ignition Coil Replacement Cost
    Oil Change Cost
    Oil Pan Replacement Cost
    Power Steering Fluid Service Cost
    Rotate Tires Cost
    Spark Plugs Replacement Cost
    Timing Belt Replacement Cost
    Valve Cover Gasket Replacement Cost
    Water Pump Replacement Cost
    Wheel Bearings Replacement Cost
    View all