What Is Gap Insurance and Do I Need It on a New, Used, or Leased Car?

Q:  What Is Gap Insurance and Do I Need It on a New, Used, or Leased Car?

Simply put, GAP Insurance can keep a bad day from turning into a financial disaster. It covers any shortfall between what you owe on your car loan and your car's actual cash value if your vehicle is totaled or stolen. I recommend purchasing it if you're buying or leasing new, given a new vehicle can lose 20-percent or more of its value in the first year.  It's also not a bad idea to get on a used or certified purchase, too, with the market volatility we've seen in recent years, unless of course, you have a large amount down.