Do You Need Gap Insurance When Buying A New Car May 2026

You have three main options, but they vary significantly in cost: What Is Gap Insurance and How Does It Work? - Progressive

Do You Need Gap Insurance for Your New Car? The moment you drive a new car off the lot, its value drops. For many buyers, this creates a risky financial scenario: you might owe more on your loan than the car is actually worth. do you need gap insurance when buying a new car

If you put down less than 20% , you will likely have "negative equity" (owing more than the car's value) for the first few years. You have three main options, but they vary