Gap Insurance Calculator

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.

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.

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.

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.

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.

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.

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.