California is one state that allows for GAP insurance to be purchased on vehicles that are financed. GAP insurance is beneficial when the value of a vehicle, new or used, depreciates while you still own money on the loan or lease.

GAP coverage provides for the difference between the actual cash value amount paid if your vehicle is a total loss or stolen and the amount you still owe on the loan or lease. Some insurance providers might have restrictions on their GAP insurance policies but it should be possible to obtain GAP insurance for a used car that is still being paid off in California.

For an affordable quote on full coverage and GAP insurance for California, go here.