Where can I find gap insurance when buying my leased car?
I am going to be buying out my lease. Do I need gap insurance? Where I can find it? My current carrier doesn't offer it. My car is two years old. The loan is $10,000 and my car is valued at $12,000.
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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.
“Deciding whether you need gap insurance depends on your financial situation. Would you be able to pay the $2,000 gap on your loan if your car was totaled tomorrow? Or would paying it cause a significant amount of financial hardship?
If it would be difficult to pay the gap, you should get gap insurance.
Since you will be buying out your lease, you can check with the dealership or lessor to see if gap coverage is already included on it. If not, they may be able to add it for you.
If it’s not something they can offer, you can find gap insurance through a car insurance company. Not every carrier offers gap insurance, so you’ll need to shop around.
Keep in mind that some carriers also call gap insurance “”loan/lease coverage.”” Terms and conditions also vary, so be sure to read the fine print. “
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