{"id":3122,"date":"2024-11-07T06:34:52","date_gmt":"2024-11-07T14:34:52","guid":{"rendered":"\/wp-site\/?p=3122"},"modified":"2025-11-27T18:35:28","modified_gmt":"2025-11-28T02:35:28","slug":"gap-insurance","status":"publish","type":"car-insurance","link":"https:\/\/jerry.ai\/car-insurance\/gap-insurance\/","title":{"rendered":"How Gap Insurance Works"},"content":{"rendered":"\n

Gap insurance bridges the financial gap<\/strong> when your car is totaled or stolen and you owe more than it’s worth. Your regular auto insurance pays the car’s current market value, but if that’s less than your loan balance, gap insurance covers the difference<\/strong> so you’re not stuck paying thousands out of pocket. <\/p>\n\n\n\n

\n \nJerry has helped 126,217<\/span> drivers <\/strong>get car insurance in the last year, including drivers who need gap insurance. Here\u2019s what to know about how gap insurance works.\n<\/p>\n\n\n\n

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\ud83d\ude97 Scenario<\/strong><\/strong><\/p>\n\n\n\n

You’re in a wreck and your car is worth $15,500, but you still owe the lender $18,000.<\/p>\n\n\n\n

Financial breakdown<\/th>Amount<\/th><\/tr><\/thead>
Your remaining loan balance<\/td>$18,000<\/td><\/tr>
Car’s current market value<\/td>$15,500<\/td><\/tr>
Your collision deductible<\/td>$500<\/td><\/tr>
Insurance payout to lender<\/td>$15,000<\/td><\/tr>
Gap insurance covers<\/strong><\/td>$2,500<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Gap coverage won’t pay your deductible<\/a> in most cases. You’ll still pay the $500 deductible, but gap insurance eliminates the $2,500<\/strong> you’d have to come up with out of pocket.<\/p>\n<\/div>\n\n\n

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The Jerry difference:<\/strong> Use the Jerry app to quickly compare car insurance quotes from companies that offer gap insurance to be sure you\u2019re fully covered.<\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n\n\n

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Jerry pulls up to 20 quotes from top rated carriers.<\/strong><\/p>\n\n\n\n

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Compare quotes<\/a><\/div>\n<\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n

Do you need gap insurance?<\/h2>\n\n\n\n

Not everyone needs the coverage. Here’s a quick reference guide if you financed your car and aren’t sure where you stand.<\/p>\n\n\n\n

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\u2705 Consider gap insurance if you have:<\/strong><\/strong><\/p>\n\n\n\n