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If there is any time during which you owe more on your car than it is currently worth, gap insurance can definitely be worth the money. If you put down less than 20% on a car, you're wise to get gap insurance at least for the first couple of years you own it.Do I need gap coverage?
GAP insurance will provide coverage for the “gap” that occurs between the value of your car and the amount you owe on the vehicle. You may need GAP insurance if your car is totaled in an accident or stolen, and you still owe on the vehicle.What is GAP insurance and how does it work?
Gap insurance is an optional, add-on car insurance coverage that can help certain drivers cover the “gap” between the amount they owe on their car and the car’s actual cash value (ACV) in the event of an accident. A car’s actual cash value is the car’s monetary value at the time of the accident, not the car’s original price.Is GAP insurance mandatory?
Generally, gap insurance is not a legal requirement. However many dealerships or car loan departments may automatically add gap insurance to the buyer's loan. When purchasing a new car you have the right to deny gap insurance.