It’s appropriate to stop having gap insurance when you owe less on your car loan or lease than the vehicle’s current market value. This typically happens as you pay down the loan and the car’s depreciation stabilizes, or if you’ve made a significant down payment that minimizes the risk of being “upside down” on the loan. Additionally, if you refinance your loan, pay it off early, or your car is fully paid for, gap insurance becomes unnecessary. Assess your car’s value regularly (using tools like Kelley Blue Book) and compare it to your loan balance to determine if the coverage is still needed. For leases, gap insurance is often included, but confirm with your leasing company. Canceling too early can leave you financially vulnerable in case of a total loss, so ensure the balance aligns before dropping coverage. Always consult your lender or insurer for personalized advice.