You said you should be able to pay your loan off within a year. You didn’t mention whether you were going to do it all at once in a year or in big payments. Gap coverage is, in my opinion one of the two most important purchases when you buy a car; the other is a warranty. If you are in a STRONG equity position and have absolutely NO danger of getting less than you owe for your car in the event that it is deemed totaled in an accident then you can consider canceling your gap coverage. Usually this strong equity position only comes from a large down payment (30-40%) or extra payments on your loan. If you are going to pay your loan off in a year you should consider keeping the gap coverage until you have a strong equity position. Usually, you can get a percentage of your money back on your cancellation so canceling early is not worth the risk. If you do not have your car paid off before you cancel your gap coverage, your unused premiums will usually go to the bank to pay down your loan.