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

: Gap insurance pays the remaining debt to your lender so you aren't stuck paying for a car you no longer own. When You Should Buy It

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

: You drive significantly more than average, which accelerates the car's loss of value. When You Can Skip It You likely do not need gap insurance if: Should You Buy Gap Insurance for Your New Car?

Consider gap insurance if any of the following apply to your financing or vehicle choice:

: Your repayment period is 60 months or longer .