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Is gap insurance required in California?

I’m getting ready to move to California with my best friend, and I’m really excited, but I’m still learning about the state laws. I’m also planning to get a new car once we get to our apartment. Will I be required to get gap insurance when I buy my new car?

avatar
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Congratulations on the big move! While gap insurance is not required by law in the state of
California
, you might still have to get it. Some lenders require gap insurance as a part of their contract, so you’ll need to check with your lender to be sure that you won’t need gap insurance.
Gap insurance is also usually a good idea, especially if you made a small down payment on your vehicle or if you otherwise anticipate being
upside down
on your loan for a while. In cases like these, gap insurance could save you a lot of money if your car is totaled or stolen before you’re able to get back on top of your loan.
If you do decide to get gap insurance, use the
Jerr​​y
app to make sure you get the best rate available. It takes less than a minute to sign up, and the average user saves $887 per year.
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