No, gap insurance is not mandatory. It is optional insurance coverage that you can choose to purchase when you buy or lease a vehicle. Gap insurance, also known as guaranteed asset protection insurance, covers the “gap” between the amount you owe on your car loan or lease and the actual cash value of your vehicle in the event it is totaled or stolen.
While it is not mandatory, it can provide valuable financial protection, especially if you owe more on your vehicle than it is worth or if you have a long-term loan or lease.
How can you get gap insurance?
You can get gap insurance from your auto insurance provider or through the dealership or lender that financed your vehicle. It’s important to compare prices and coverage options from different sources to find the best policy that suits your needs and budget.
Final thoughts
Ultimately, whether or not you need gap insurance depends on your individual circumstances. If you’re not sure if gap insurance is right for you, talk to your insurance provider or a financial advisor to get personalized advice.
