What is the Hartford’s gap insurance? Should I get it?

I’m buying a new car, and the dealership says they’ll help me get car insurance when it arrives. The saleswoman said I should get the Hartford’s gap insurance, but she didn’t explain what that is or why I need it. Could you tell me about the Hartford gap insurance? Should I get it?

Matt Terzi · Answered on Feb 08, 2023
Reviewed by Shannon Martin, Licensed Insurance Agent.
We’re more than happy to explain the Hartford’s gap insurance for you. Gap insurance is meant to cover the difference between the actual cash value (ACV) of your vehicle and the amount you owe on your loan or lease.
Like many car insurance companies, The Hartford offers gap insurance that can protect you financially from needing to make up this difference out of pocket.
Let’s say your new car costs $30,000. Your loan is for that amount, plus whatever interest they’re tacking. But as soon as you drive your new car off the lot, it loses 9 to 11 percent of its value—let’s just say 10 percent for simplicity’s sake. That’s called depreciation.
That depreciation means your car is only worth $27,000 by the time you get it home, at least so far as your car insurance provider is concerned. And if your car was totaled, they’d only cover up to $27,000, leaving you on the hook for that $3,000 value lost and the interest.
Gap insurance alleviates this by paying “the gap” between the actual cash value of your car and the amount remaining on your loan, so you’re not left paying out of pocket.
We very strongly encourage you to get gap insurance. And you should shop around and find the best rates. You’re not obligated to use the insurance provider the car dealership suggests.
We hope all of this information is useful, and that you love your new ride. Never hesitate to drop us a line with your car insurance questions; we’re here to help!
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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.

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