Gap Insurance?

Question

Can you purchase GAP insurance on a vehicle if you didnt add the feature at the time of purchase? I live in NC and Im considering a trade for a newer model car. The finance company will not finance GAP insurance with the vehicle.

Answer 1

this is purchased at the time of purchasing the car.  if its not a new car it can be harder to get put on.  In NC it is harder to find an insurance agency that will endorse this on your policy as well.  I don't write for a single company that does it.  its also usually cheaper if you can get it when you buy the car.  try going through a different finance company.

Answer 2

I just bought a car this week, and the finance guy said he’d let me add it later if I want.  I don’t know if that’s standard practice though.

Worst case, you can always refinance your loan with a different lender and opt to take the GAP coverage at that time.

Answer 3

GAP is normally issued at the time of the loan because it is insurance FOR the loan. I dont think it is standard to issue it later. You can get it for new or used cars (I sell it all the time at the credit union) as it covers the loan itself, not the car. So it wont matter if there is damage to the car already.

GAP covers the car loan if the car it totaled by the insurance company or stolen & not recovered. It will pay the difference between what the insurance company pays and the loan balance assuming you may be upsidedown.

Answer 4

Generally GAP insurance is an option at time of purchase. One of the reasons why it is hard to get it on a car that is not new anymore is because the car could have damage, had been in an accident and repaired, or any number of other issues.

If the finance company won't offer it, try looking up other financial companies on-line, including banks, dealerships that sell you car, to see if they will offer it to you.

Good Luck!

Answer 5

Usually your auto insurance company will let you buy gap coverage within the first 30 days after you've added the car to your policy.  Usually, it has to be two years old or newer.  

Keep in mind, if you're upside down on your current car, the gap does NOT cover the additional amount that you're rolling over into a new finance agreement.