PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
What's the difference between gap insurance and new car replacement coverage?
I'm going to be purchasing a new Subaru Crosstrek. My lender offers gap insurance, while my car insurance company offers new car replacement insurance. Is there a difference?
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“
New car replacement insurance
protects you if your new car if it is totaled, normally only in the first year or two, by paying for a similar make and model minus your deductible. Gap insurance
protects you if there is a difference between the actual cash value of your vehicle and the amount you owe on your loan after a total loss. It covers this “”gap””; it does not pay for a new car. Gap insurance can be maintained for the lifespan of your loan.Both are useful coverages to have on a new vehicle, but you would typically only have one or the other. Depending on your situation, one may be more important to you than the other.
Ask your current car insurance company if they offer either and what the cost is to add them to your policy. You can also shop around to compare
car insurance quotes online
and get a better rate for coverage.”View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies