It’s a good idea to consider buying gap insurance for your new car or truck purchase if you:
- Made less than a 20 percent down payment.
- Financed for 60 months or longer.
- Leased the vehicle.
- Purchased a vehicle that depreciates faster than the average.
- Rolled over negative equity from an old car loan into the new loan.
While the car dealer may offer to sell you gap insurance on your new vehicle, most car insurers offer it—and it typically costs much less. On most auto insurance policies, including gap insurance with collision and comprehensive coverage adds only about $20 a year to the annual premium.