Without it you would be required to pay the difference.

Do you need gap insurance when leasing a car. Gap insurance makes the most. This is coverage you should have in place if you have decided to lease a vehicle. If youre unsure as to whether or not you signed up for gap coverage pull all of your car lease documents and look through them to see if there is a provision regarding gap insurance.

If youre leasing or financing a new car many lenders require you to have collision and comprehensive coverage on your car insurance policy until your car is paid off. GAP insurance or guaranteed asset protection insurance to give it its full name is designed to protect you when you lease or buy a new car. It might be a good idea to purchase gap coverage as well which will help cover you in case of an accident.

Keep in mind the costs for adding it will vary. If your insurer provides you with a compensation amount equal to your vehicles value gap protection is not needed. Gap insurance for leased commercial limousines taxis and accessible vehicles is not mandatory.

If its not the motor dealer or agent that does it prior to you taking delivery of the vehicle itll be the motor dealers customer services team or the finance company themselves that contact you by. If you dont have gap insurance coverage built into your car lease contract then you may want to add it to your current auto insurance policy or purchase it separately. Essentially a GAP insurance policy will bridge the difference between your insurers payout and the finance owed on your lease car if its declared a total loss.

Gap insurancealso known as guaranteed auto protectionreimburses a car owner when the payment for a total loss is less than the outstanding loan or lease balance. Gap insurance is meant to be used in conjunction with collision coverage or comprehensive coverage. GAP insurance is a form of optional vehicle cover you can choose when leasing a car.

You need gap insurance for a leased car because drivers of leased vehicles often owe more money that the auto is worth. This means 3500 is still required to pay off your loan. Not having this coverage can leave you financially unprotected if.