Is gap insurance a one time purchase?

Answer 1

Yes, at the time you get your car note unless you purchase from companies like Progressive, where you are adding it to your auto policy.

Be aware--Gap is considered a fraud indicator in theft claims, coupled with the factory so-called anti theft systems that don't stop theft. Especially if you are upside down in your car. The contention is that you can just walk away from that over inflated car payment.

It goes to denial of the theft claim. I know it, I live it.

I am an SIU Investigation Consultant for insureds during their theft claim and sometimes convert to their forensic auto theft expert.

Gap insurance is mainly meant to protect the lien holder's interest. If you trade in a car owing more than it's worth, carry the balance over to the new car and you drive the new car off the lot, you just lost 20% on that, so the loan many be contingent on the purchaser paying a one time payment on Gap financed in the deal