Is Nissan Gap Insurance Worth It?
Purchasing Guaranteed Auto Protection (GAP insurance) from your Nissan dealership will be more expensive than adding it to your car insurance policy.
Written by Melanie Johnson
Reviewed by Christelle Agustin
Nissan Guaranteed Asset Protection (
GAP insurance
) protects you in the event your car is totaled or stolen by covering the amount you still owe on a loan or lease. This protection may also be offered through your car insurance provider and is often cheaper.If you’re shopping for or have recently started leasing a new Nissan, you should consider purchasing gap coverage. If you’re not sure what that is or how to get it, you’ve come to the right place! In this article, we’ll talk about what gap insurance is, how much it costs, and the different ways you can get it.
How does Nissan GAP work?
Nissan’s Security+Plus® Guaranteed Asset Protection (GAP) plan is available to drivers with new and pre-owned Nissan vehicles valued at up to $100,000. Gap coverage is just one of the many benefits available with the GAP plan, which also includes roadside assistance and extended warranty coverage.
In the event your car is totaled, Nissan GAP protects your investment by covering the difference between your car’s actual cash value (
ACV
) and the amount you still owe on your loan or lease payment. Nissan
GAP insurance also covers theft
. If your Nissan is stolen, gap coverage will work the same way by waiving your remaining loan or lease balance. Depending on the state you live in, Nissan GAP may also cover your insurance deductible up to $1,000.Keep in mind that Nissan GAP is only available at the time of financing. Be sure to decide ahead of time if gap coverage is right for you because you won’t be able to purchase it after the fact—unless you purchase it through your car insurance provider.
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How much does Nissan GAP cost?
In most cases, purchasing a Nissan GAP policy at a dealership will cost a total of $400 to $700.
Nissan GAP vs. alternative gap insurance
But wait—you’ve got options when it comes to purchasing gap insurance!
You can also purchase it through your car insurance company. Many of the nation’s biggest insurers, including
GEICO
, State Farm
, and Progressive
, offer Guaranteed Asset Protection (GAP) insurance as an add-on to your existing car insurance policy.So who should you purchase gap insurance from—Nissan or your car insurance provider? That depends. If you’re looking for convenience, you can’t beat purchasing gap insurance directly from the dealership—just keep in mind that the cost may be added to your
car loan
or lease payment and you’ll have to pay interest on it. If you’re looking for the cheapest option, go with your car insurance provider (assuming they offer it!). Consult the chart below for the pros and cons of purchasing Nissan’s GAP plan vs. gap coverage through your auto insurance company.
Nissan Security+Plus GAP plan | Gap coverage from your auto insurance company |
|---|---|
Only available at the time of financing | Available 24/7 |
One-time fee of $400 to $700 | $20 to $40 per year |
Cancel any time | Cancel any time |
Refunds based on usage | Standard refunds |
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Do you need GAP insurance?
Gap insurance provides peace of mind and financial protection if your financed or leased car is stolen or totaled in an accident—but it’s not always necessary.
Purchasing gap insurance may make sense if you:
- Made a down payment on your new car that was 20% or less
- Have a long financing term (60 months or longer)
- Have rolled over negative equity from a previous car loan
- Just began leasing a vehicle
That said, some lease contracts may already include gap insurance—so be sure to check the terms of your lease.
When does purchasing gap coverage not make sense? If you have a short lease term or put more than 20% down at signing, gap coverage may not be worth the added cost. Gap coverage is also not necessary if you buy a used car—unless you buy an especially rare or valuable one, that is.
How to cancel Nissan GAP insurance
Nissan allows you to cancel your GAP insurance coverage within the first 60 days for a full refund. If you cancel GAP coverage anytime after that, you’ll receive a partial refund.
GAP insurance can vary by lender and dealership, so make sure to consult your GAP agreement for its specific cancellation policy.
What is the Nissan GAP insurance refund process?
If you cancel Nissan GAP coverage within the first 60 days of purchasing it, you should receive a full refund. For cancellations made after the first 60 days, you’ll receive a refund based on the unused portion of your policy.
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