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Is gap insurance really worth the money?

Should I get gap insurance on a new car? I'm in the process of buying a car on an 84-month term. My credit union lender keeps telling me that I should get gap insurance, but I'm not sure if it's worth it.

Eric Schad · Updated on Jul 21, 2021

Reviewed by Shannon Martin, Licensed Insurance Agent.

“Getting

on an 84-month loan is definitely a good idea.

Because the term of your loan is so long, you’ll be

on it for a majority of the loan. If you were to get in an accident, the value of your car would likely be below the amount you owe on the loan.

Gap insurance covers the difference between these two values. If you want peace of mind or you’re accident-prone, gap insurance is definitely worth the investment.”

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