: You rolled debt from a previous vehicle into your new car loan.
Consider gap insurance if any of the following apply to your financing or vehicle choice: should you buy gap insurance
: You bought a luxury vehicle or a model known for losing value quickly. : You rolled debt from a previous vehicle
Guaranteed Asset Protection (GAP) insurance covers the "gap" between your car's and your outstanding loan or lease balance . should you buy gap insurance
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.
: 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