GAP Insurance Calculator
GAP (Guaranteed Asset Protection) insurance covers the difference between what you owe on your car loan and what your car is actually worth. Use this calculator to find out if you need it.
What Is GAP Insurance?
When you finance a car, its value depreciates quickly — often faster than your loan balance decreases. If your car is totaled or stolen, your regular insurance only pays the current market value, which may be less than what you owe. GAP insurance covers that shortfall so you're not left paying for a car you no longer have.
GAP insurance is most valuable when you made a small down payment, financed for a long term (60+ months), are leasing, or bought a vehicle that depreciates quickly.
Frequently Asked Questions
When should I buy GAP insurance?
You should consider GAP insurance if your loan balance exceeds your car's market value (you're "upside down"), if you made less than a 20% down payment, or if you're leasing a vehicle. It's most important in the first 1-3 years of ownership when depreciation is steepest.
Where can I buy GAP insurance?
You can purchase GAP insurance through your auto insurer (usually the cheapest option), the dealership when you buy your car, or your lender. Buying through a dealership is often the most expensive option.
How much does GAP insurance cost?
Through an auto insurer, GAP coverage typically costs $20–$40 per year added to your existing policy. Dealerships may charge $400–$900 as a lump sum rolled into your loan. Always compare options before buying.
Can I cancel GAP insurance?
Yes. Once your loan balance drops below your car's market value, you can cancel GAP coverage. If you cancel early, you may be entitled to a prorated refund on unused premium.
Does GAP insurance cover my deductible?
Standard GAP insurance does not cover your deductible. However, some policies or add-ons (called GAP Plus) do cover the deductible. Ask your insurer about available options.
Disclaimer: Results provided by this calculator are estimates only and do not constitute insurance advice or an actual insurance quote. Actual GAP insurance costs depend on many factors not captured here. Consult a licensed insurance professional for accurate quotes and coverage recommendations.