Not having gap insurance on a leased car exposes you to significant financial risk if the vehicle is totaled or stolen. Standard auto insurance typically pays only the current market value of the car, which often depreciates faster than the lease balance. Without gap insurance, you would be responsible for paying the difference—or “gap”—between what your insurer covers and what you still owe on the lease. This amount can be thousands of dollars, especially early in the lease term when depreciation is steep. Additionally, you may still be liable for lease-related costs such as early termination fees or remaining lease payments. This out-of-pocket expense can be financially burdensome, potentially affecting your credit if unpaid. Therefore, skipping gap insurance might save on premiums in the short term but could result in major financial hardship if an accident or theft occurs before the lease is fully paid off.