Gap Insurance Calculator
If your car is totaled or stolen, your insurer pays only its current market value — not what you still owe. That shortfall is the "gap". Enter your numbers below to see the gap on your loan and whether gap insurance is likely worth it for you.
Gap Insurance Calculator
How this works
Gap insurance covers the difference between what your car is worth and what you still owe if it is totaled, stolen, or otherwise declared a total loss. Regular comprehensive and collision coverage pays only the car's actual cash value (ACV), which can be well below the loan balance in the first few years of a financed purchase or lease.
This calculator computes the gap as your remaining loan or lease balance minus your car's current market value. If the result is zero or negative, you owe no more than the car is worth and there is nothing for gap coverage to pay.
The break-even figure divides the gap by your monthly gap premium: it is the number of months of premiums that would equal the amount the coverage could pay. It is a rough guide, not a recommendation — your decision also depends on how long you plan to keep the car and how quickly you expect to pay the loan down.
Frequently asked questions
How is the gap calculated?
Gap = remaining loan or lease balance − the car's current market value. If that number is zero or negative, you are not upside-down and gap insurance would not pay out.
Does gap insurance cover my deductible?
Most gap policies do not cover your comprehensive or collision deductible, which is why the calculator shows the deductible as your out-of-pocket cost even with gap coverage. Check your specific policy.
Is gap insurance required?
It is not required by law, but lenders and lessors sometimes require it on a new financed or leased vehicle. It is usually optional if you are not contractually required to carry it.
When does gap insurance not pay?
It typically will not pay if the loss is not a total loss, if the claim is denied, if you missed payments and the loan is not current, or if you already cancelled the coverage.
Should I buy gap insurance from the dealer or my insurer?
Compare both. Dealer gap coverage is often bundled into the loan, while adding it to an existing auto policy may be cheaper. Either way, compare the total cost against the gap shown above.
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