Home › Dealer fees › GAP insurance
GAP insurance: do you have to pay it?
Found "GAP insurance" on your car quote? Here is what it is, whether you have to pay it, and what to say to the dealer. Check your whole quote free: it stays on your phone.
Check my quote freeWhat it is
Coverage that pays the difference between what you owe on the loan and what the car is worth if it is totaled or stolen.
Do you have to pay it?
No. It is optional. Your car insurer or credit union may sell it for less, and the dealer's price is negotiable.
What to say to the dealer
"I'll pass on the GAP coverage for now. I'm comparing prices with my insurer."
Before you sign
Ask for the out-the-door price in writing, with every line itemized. Compare it with other dealers, and don't sign until the buyer's order matches what you agreed.
Related fees
- Extended warranty (service contract)
- Tire and wheel protection
- Prepaid maintenance plan
- Key replacement coverage