Question: What Time Frame is Allowed to Purchase Gap Insurance?

Gap insurance can be purchased from a couple of different sources. The time frame in which you can purchase gap insurance may vary, but only slightly. It’s a good idea to make your decision on whether or not you need gap insurance as soon as possible.

Answer: Decide where you are purchasing gap insurance to establish the time frame allowed in making the purchase.

Lender = At the Time of Purchase

Car Insurance = Within 30 Days of Initial Purchase

If you purchase gap coverage through your car insurance, make sure you keep the coverage if you switch insurance carriers. Most insurance carriers will honor the coverage if it is on your prior policy. This is the one time most insurance companies will offer gap coverage past the 30 day time frame.

Loan/Lease payoff is similar to gap insurance, however it has some limitations. Loan/Lease payoff can potentially be purchased at anytime. You will need to check with your insurance carrier to see if it’s offered and its availability.

The best time to purchase gap insurance is right when you purchase your vehicle, whether it is from a lender or your car insurance. Unfortunately, accidents can happen within the first 30 days of purchase. This potentially makes the time frame critical for having the coverage. Take the time to consider gap insurance and finalize the purchase without delay.