Calculate if you need gap insurance by comparing your loan balance to your vehicle's actual cash value. Get personalized recommendations and see cost analysis. Protect yourself from financial loss after a total loss.
Gap insurance covers the difference between what you owe on your car loan and your vehicle's actual cash value if it's totaled or stolen. This coverage is essential when you're "upside down" on your loan - meaning you owe more than your car is worth.
Key situations where gap insurance is recommended
Compare costs between insurance companies and dealers
Best Value: Buy from your auto insurance company and pay annually to avoid interest charges.
Use our calculator to make an informed decision
Use our free gap insurance calculator above to determine your exact coverage gap. If your gap is over $5,000 or 20% of your loan balance, gap insurance is typically worth the cost. This tool helps you make an informed decision and avoid overpaying for unnecessary coverage.
Enter your vehicle and loan details to determine if gap insurance is right for you. Get instant analysis and personalized recommendations.
Enter your current vehicle and loan details
💡 Find current value: Check KBB, Edmunds, or your insurance company's valuation. Loan balance is on your monthly statement.
Enter the cost of gap insurance coverage
💰 Cost comparison: Insurance company: $400-700/year. Dealer financing: $500-1,000+ (avoid if possible).
Analysis of your current gap between loan balance and vehicle value
Personalized recommendation based on your gap analysis
Gap insurance is optional. You have a moderate gap of $4,000. Consider your risk tolerance and the cost of coverage.
$50.00
For gap coverage
6.7x
Gap amount vs cost
Good Value
Cost vs benefit
What you'd pay out of pocket without gap insurance
Understanding the mechanics of gap coverage
Gap insurance only pays out when your car is declared a total loss by your insurance company. It covers the difference between your loan balance and the actual cash value (ACV) your insurance pays.
Example: You owe $28,000 on your loan, but your car is only worth $24,000. Without gap insurance, you'd pay $4,000 out of pocket. With gap insurance, you pay nothing.
Know when you no longer need coverage
Cancel gap insurance when your loan balance equals or falls below your car's actual cash value. This typically happens after 2-4 years of ownership.
How to check: Compare your loan balance (on your monthly statement) with your car's current value (KBB, Edmunds, or insurance valuation). When they're equal or you have positive equity, cancel for a partial refund.
What you need to know about coverage requirements
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Common questions about gap insurance, coverage, costs, and when you need it
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