) comes standard on all Subaru lease agreements and covers the difference between the amount outstanding on your vehicle’s lease and the amount of your insurance settlement if your car is declared a total loss.

If you’re considering buying a new Subaru and want to safeguard your vehicle (and your wallet) against losses, you’ll likely be offered GAP coverage. If you’re unsure how GAP coverage works and whether or not you need it, don’t sweat it—we have all the details right here. We'll cover what this coverage is, who should buy it, and how to get the same protection for less from your car insurance company.

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How does Subaru GAP work?

If you’ve leased a vehicle from Subaru, GAP insurance is automatically included in your Subaru Financial Services lease contract. For drivers financing their vehicles, GAP insurance comes as an optional coverage, along with other benefits like

Subaru roadside assistance

and

Subaru extended warranty coverage

For leased Subaru vehicles, GAP insurance covers the difference between what you owe on your lease and the amount of your insurance settlement if your vehicle is declared a total loss. But before you receive any payout, you’ll need to pay your insurance deductible and outstanding charges (wear and tear, mileage, etc.) owed under your lease.

Subaru doesn’t specify exactly what their GAP insurance covers, but generally speaking, gap insurance will also

protect against financial losses from theft

. So if your Subaru is stolen before you’ve paid off your

car loan

or your lease is up, your GAP insurance will either reduce or eliminate any remaining balance on the vehicle to prevent out-of-pocket expenses for you.

In most cases, Subaru GAP coverage is only available at the time of financing, so if you decide you want it later, you’ll have to negotiate terms with your Subaru dealership. Alternatively, you can purchase gap coverage through your personal

car insurance

provider, usually at a cheaper rate.

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How much does Subaru GAP cost?

You won’t find the details on the price of Subaru’s GAP coverage on their website, so contact your local Subaru dealership for information. That said, the average price for gap insurance from a car dealership is between $400 to $800. The exact cost depends on your lease or financing terms and the make and model of the car.

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Subaru GAP vs. alternative gap insurance

If you opt out of purchasing GAP insurance through Subaru, you can find a similar insurance—guaranteed asset protection—through your personal auto insurance company. Most major insurance providers, such as

GEICO

State Farm

, and

Progressive

, offer gap insurance.

So which is the better deal? Adding GAP insurance to your financing plan with Subaru is a convenient way to maximize protection, but it’s generally not the cheapest option. When GAP insurance is worked into your lease or financing terms, you’re paying interest on your premium, whereas if you purchase it through your auto insurer, you’re paying only for the policy.

Check out the table below to compare the benefits and drawbacks of buying Subaru’s GAP insurance versus adding it to your regular car insurance policy.

Subaru Guaranteed Auto Protection	Gap coverage from your auto insurance company
Only available at the time of financing	Available as long as: Your loan balance exceeds your vehicle’s actual cash value You are the first or second owner of the vehicle (prior ownership guidelines vary by insurance provider) The vehicle meets your insurance provider’s age and mileage requirements, generally meaning the car is less than three years old and has low mileage
$400 to $800	$20 to $40 per year
Call Subaru for cancelation details	Cancel anytime
Limited refunds	Refunds are standard

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Should I get gap insurance from a dealer or an insurance company?

Do you need gap insurance?

Gap insurance isn’t mandatory, and while it can offer good financial protection when you owe more than your car is worth, it’s not always necessary.

You may have heard of the term “upside down” when referring to a home mortgage—the same concept can be applied to financing a car. When you first sign your paperwork and drive your car off the lot, you automatically owe more on your vehicle than it’s worth (thank you, depreciation). The discrepancy between how much you owe your lender and how much the car is worth is where gap insurance comes into play—it covers the shortfall between how much your insurance settlement covers and how much you owe if you’re involved in an accident and your vehicle is deemed a total loss.

If you’re leasing through Subaru, gap insurance will automatically be included in your lease terms, but it may not be if you’re financing.

Most lenders do not require drivers to get gap coverage with their new Subarus, but it may be worth the extra money, especially because cars depreciate about 20% once they’ve left the dealership. As a result, there’s a period where you owe more on your car than it’s worth. Buying gap insurance means greater peace of mind that you won’t have to empty your pockets in the event of a total loss.

To summarize, buying Subaru gap insurance makes sense if you:

Have a down payment of less than 20%

Have finance terms of 60 months or longer

Lease your vehicle (GAP insurance is generally mandatory for a lease and is included with all Subarus)

Purchased a vehicle that depreciates faster than average

Rolled over negative equity from an old car loan into the new one

Keep in mind that if you purchase Subaru gap insurance, you don’t have to keep it for the life of the vehicle. Once the amount you owe is less than the cash value of your car, there’s no need to keep gap insurance. At that point, there will be little or no gap insurance payout possible.

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How to cancel Subaru gap insurance

For details on how to cancel Subaru gap insurance, contact your local Subaru dealership. In general, most dealers will allow you to cancel within 30 days of purchase and receive a full refund, but if it’s past the grace period, you may be subject to cancelation fees, or you may be out of luck.

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