Gap Insurance Calculator

When a car is totaled or stolen, standard insurance only pays out the vehicle's current market value — which is often less than what you still owe on the loan. The Gap Insurance Calculator shows you exactly how much that shortfall is. Enter your current loan balance and current car value to see your GAP coverage needed, the gap as a percentage of your loan, and whether your existing GAP policy limit is sufficient to cover it.

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Amount you still owe on your car loan

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Current market value of your vehicle

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Maximum coverage amount from your GAP policy

Results

GAP Coverage Needed

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GAP as % of Loan Balance

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Coverage Status

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Frequently Asked Questions

What is GAP insurance?

GAP (Guaranteed Auto Protection) insurance covers the difference between what you owe on your car loan and the car's actual cash value if it's totaled or stolen. This protects you from having to pay out-of-pocket for the remaining loan balance.

How do I calculate if GAP insurance is worth it?

GAP insurance is typically worth it if you owe more on your loan than your car's current value. Use our calculator to find this difference - if the gap is significant (typically $2,000+), GAP insurance can provide valuable financial protection.

When should I consider GAP insurance?

Consider GAP insurance if you made a small down payment, have a long loan term, bought a rapidly depreciating vehicle, or rolled negative equity from a previous loan into your new loan. These situations often create a gap between loan balance and car value.

How does GAP coverage work in practice?

If your car is totaled, your regular insurance pays the car's current market value. GAP insurance then covers the remaining loan balance up to your policy limit, minus any deductible. This prevents you from owing money on a car you can no longer drive.

What information do I need to calculate GAP coverage?

You need your current loan balance (found on your monthly statement) and your car's current market value (check Kelley Blue Book, Edmunds, or similar resources). Optionally, include your GAP policy's coverage limit if you already have one.

Is GAP insurance always necessary?

No, GAP insurance isn't always necessary. If your car's value equals or exceeds your loan balance, you don't need GAP coverage. This often happens after you've owned the car for several years or made a large down payment.

Where can I buy GAP insurance?

You can purchase GAP insurance from car dealerships, auto insurance companies, banks, or credit unions. Insurance companies typically offer the most competitive rates, while dealership GAP coverage is often more expensive but convenient.