Should You Buy Gap Insurance May 2026

: You put down less than 20% of the car's price.

: You bought a luxury vehicle or a model known for losing value quickly. should you buy gap insurance

: Your repayment period is 60 months or longer . : You put down less than 20% of the car's price

: You rolled debt from a previous vehicle into your new car loan. should you buy gap insurance

: If your car is stolen or totaled, standard comprehensive insurance only pays the current market value.

Buying gap insurance is a strategic financial decision that depends on whether you are "underwater" on your vehicle loan—meaning you owe more to your lender than the car is actually worth.

: Most lease agreements benefit from or even require gap insurance because depreciation often outpaces your payments.