Gap Insurance: How It Impacts Your Car Loan or Lease

You've got your auto lease deal all set when it hits you: "What happens if this car gets into an accident?"

Technically, the car still belongs to the manufacturer or leasing company. But, you're still responsible for replacing it.

That's right. Even after your auto insurance company figures out how much the car is worth and pays off the damage, you may still owe the carmaker some dough. And that's where gap insurance comes in.

Though it may sound trivial, gap insurance is a must for leasing. And if you made a small down payment when buying a car, a gap policy can ... Back to article