Direct answer
It depends on the loan-to-value ratio; if your down payment was large enough that you owe less than the vehicle’s actual cash value, you likely do not need gap insurance.
Industry-standard automotive lending guidelines regarding depreciation and loan balance risks. For additional information about understanding auto loan risks and vehicle financing, see the Consumer Financial Protection Bureau‘s guide to auto loans.
What this means for you
It depends on the loan-to-value ratio; if your down payment was large enough that you owe less than the vehicle’s actual cash value, you likely do not need gap insurance.
FARMER STOCKMAN
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This page is informational and not a coverage guarantee or quote.
