How Do I Know If I Have Gap Insurance?

Summary: Although you can deduct home insurance premiums, it depends on the status of the property. Furthermore, there are other expenses, such as property taxes and closing costs, that may need consideration while filing. As always, tax codes can change and are complex. Working with a licensed professional is always the best course of action. Estimated Read Time: 2 mins

You can check your car insurance policy or lease/loan terms to determine if you have gap insurance or not. This type of insurance is often optional from insurers or dealers, and it’s important to check before adding more coverage.

If you aren’t sure, contacting your agent or insurance company can help you better understand how you are protected. Should you determine that you do have gap insurance but don’t know where you signed up for it, you may need to check multiple sources for confirmation.

Do I Have Gap Insurance?

Dealers often include gap insurance in loan payments, detailed in the sale documents. Reviewing the documents from both your dealer and lender if you financed through a bank is a great place to start.

While not a state requirement like liability insurance, gap coverage may be included in leases. Confirm gap insurance inclusion by checking with your insurer, and lender, and by reading the financial documents attached to your vehicle’s transaction.

Exclusions in policies may reduce claim amounts, so review policy details carefully. If disputing a claim amount, discuss it with your insurer and consider requesting an appraisal if unsatisfied. Here are a few tips for checking whether or not you have gap insurance among these parties:

  • Review the documents you receive from your dealer and lender.
  • Contact your auto insurance company to review the coverages you’re enrolled in.
  • If you are leasing a vehicle, be sure to look out for gap waivers. These are technically different but put into some contracts. It’s always important to double-check.

Adding Gap Insurance

If you’re looking to add gap insurance, you have several options available. Working with an auto insurance company that partners with multiple carriers, however, can help you compare multiple rates, and discounts, and secure the lowest premium with protection tailored to your needs. Again, lenders and dealers may offer protection but your options may be limited.


1. Do you need gap insurance for your car? How does it work?, TDI. Accessed February 2024.

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