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