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Q

Can you buy gap insurance any time?


A

Gap insurance providers' terms and guidelines differ however in general Gap insurance is available on new, used and refinanced cars, trucks and SUV's leased, purchased or refinanced within the past 12 months. So you have one (1) year normally in which to buy Gap insurance on a car that has a lease or loan on it and you are upside down on it, meaning you owe more than the worth of the vehicle.

Gap insurance does not have to be bought at the same time as a new or used financed car is purchased.

If you want more information on GAP insurance providers for your state try contacting your state's insurance regulatory body to see if they have a list.

 

Can I purchase GAP insurance for my motorcycle?

 

Unfortunately, we don't know of any after market carriers that sell GAP insurance for motorcycles. We contacted our GAP Affiliate and Certified Car Car-Extended Warranties and neither offers GAP insurance on motorcycles. Because of this, it is typically only available at the time of purchase for motorcycles. We recommend you contact a motorcycle dealer and see if their point of sale provider will sell you a GAP policy for your motorcycle.

For other motorcycle insurance coverage contact our partner Safeco at this link or by calling 1-800-936-0356.

 

Can I purchase Gap insurance on a car that is 3 years old and 86,000 miles?

 

Gap insurance providers' terms and guidelines differ however in general Gap insurance is available on new, used and refinanced cars, trucks and SUV's leased, purchased or refinanced within the past 12 months.

If you bought this car recently, though it is a 3 year old vehicle, you would normally be able to place Gap insurance on it if you are in a situation where you owe more than the car is worth (are upside-down on the loan). If however you purchased the car 3 years ago and now want to place Gap insurance on it then normally it would be hard to do so since most Gap insurance providers only give you 1 year to buy this insurance.

Some Gap insurance carriers may have limits on how old the car is, for instance some limit the car to being 8 years old but the mileage on the vehicle is not typically an issue for obtaining Gap insurance for a recently purchased vehicle.

 

I just finished paying off my car this week, can I still get GAP insurance?

 

If your car is now paid off so that you no longer have a lien holder on the vehicle there would not be a reason for you to now obtain Gap insurance. There would be no insurance benefit because GAP requires a loan on a vehicle. Another term for GAP is Loan/Lease Payoff insurance.

Guaranteed Auto Protection (GAP) insurance coverage is purchased if you have negative equity in a vehicle (owe more than the worth of the vehicle) because Gap insurance pays the difference between actual cash value (ACV) of a vehicle and the current outstanding balance of a loan or lease when the car has been declared a total loss. Since you do not have a loan out on the vehicle because you paid it off this week, it would not appear that GAP insurance would be of any help to you if the car was totaled out.

If your vehicle still has a decent ACV you normally would still want to have physical damage coverages of Collision and Comprehensive on it. CarInsurance.com can help you find affordable car insurance for your new or used vehicle here.



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