Armstrong Fairway Insurance Center

What is Gap Insurance?

If a financed car is determined to be a total loss and the payout on the car is less than the loan amount, Gap Insurance covers the difference.  In other words, Gap Insurance covers the difference between the amount a car is financed for and how much it is actually worth.

Gap Insurance is available for new cars only.  Since a car depreciates in value as soon as it is driven off the dealer's lot, Gap Insurance must be purchased within a few days after buying the car.
 

Buying Gap Insurance

When purchased directly from a car dealer, Gap Insurance can often cost a thousand dollars or more.   When purchased from an independent insurance agency, the cost is usually a few hundred dollars or less.