What does gap insurance cover on my leased Honda?

I have seven months left on my lease for a 2017 Honda Civic. I am going to be changing car insurance companies and they don't offer gap insurance. Is this something I need to have on a leased vehicle?

Answer
Gap insurance covers the difference between what you owe on a vehicle and its actual cash value (purchase price minus depreciation).
Since you are near the end of your leasing period, you may not need gap insurance anymore. If the cost of your lease buyout is less than the value of the car, you won’t need gap insurance.
Should anything happen to the vehicle, the actual cash value of the vehicle would cover whatever is remaining on the lease.
Most leasing companies will allow you to remove gap insurance once you no longer need it. However, every company is different.
Be sure to check with your company before switching car insurance carriers. It may be a requirement of your contract that you maintain gap insurance until the end of your lease.
Once you check with your lessor, shop around to find the best rates for the coverage you’ll need. “
avatar
Emily Maracle
Answered on Apr 30, 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