Top GAP Insurance Provider [2024]
Insurance with GAP coverage protects the policyholder for the difference between the value of the vehicle and the remaining balance of the loan or lease. GAP insurance only adds an average of $30 per month to your auto insurance premium. GAP insurance is offered by most auto insurance providers including Travelers, Progressive, Nationwide, and more.
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Diego Anderson
Licensed Real Estate Agent
Diego Anderson is a Real Estate Agent based in the Bay Area of California. Having received his Real Estate License at the age of 18, he wasted no time learning the ins and outs of the industry. With a focus on residential dual agency, he has a passion for supporting and educating families on their home buying and selling decisions. He is no stranger to new builds and new developments. He also r...
Licensed Real Estate Agent
UPDATED: Feb 28, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 28, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Not all auto insurance providers offer GAP insurance
- GAP insurance covers the difference between what a vehicle is currently worth and the amount one owes on it
- USAA, Travelers, and Progressive are among the highest-rated auto insurance providers for GAP or total-loss insurance coverage
GAP insurance or “guaranteed asset protection” is a form of optional auto insurance coverage that protects policyholders in the event they owe more money on a vehicle than what the vehicle is worth.
Many, but not all, auto insurance companies offer GAP insurance. Buyers have the option of purchasing GAP insurance through the dealership where the vehicle was purchased or financed.
Because GAP insurance is an optional coverage, you may wonder if GAP insurance is worth the extra cost. Typically, GAP insurance is a good idea for those who finance their vehicles. If you pay the entire purchase price for your vehicle up front, you don’t need GAP insurance.
Find auto insurance with GAP coverage in your area by entering your ZIP code in the free tool above.
What is GAP insurance?
According to the Insurance Information Institute, GAP insurance is the difference between what a vehicle is currently worth and the amount you still owe on it.
This type of coverage is used along with any collision or comprehensive coverage on your auto insurance policy. Collision and comprehensive coverage only protect a totaled or stolen vehicle up to its depreciated value.
GAP insurance steps in by covering the remainder of a vehicle’s cost when a collision or comprehensive coverage stops at the depreciated value. This is why GAP coverage only works for financed or leased vehicles.
A vehicle that is owned outright won’t have a remaining balance after comprehensive or collision insurance is applied to a claim. GAP insurance specifically covers the remaining balance of a loan or lease to the bank/loan provider or dealership.
Read more: Best Auto Insurance for a Leased Vehicle
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Auto Insurance with GAP Coverage
GAP insurance, also known as loan/lease GAP coverage, or total-loss-protection coverage, is offered by many standard auto insurance providers. Affordable car insurance with GAP coverage is available in several ways:
- From an auto insurance company
- A loan provider, or
- A dealership
GAP insurance purchased through an auto insurance company will typically increase your premium by at least $30 a year. The same coverage purchased through a dealership or loan provider can add at least $500 to your loan per year.
| Auto Insurance Companies | GAP Insurance | Total Loss Coverage |
|---|---|---|
| Allstate | Yes | |
| Geico | ||
| The Hartford | Yes | |
| Liberty Mutual | Yes | |
| Nationwide | Yes | |
| Progressive | Yes | |
| Travelers | Yes | Yes |
| USAA |
Allstate: Insurance with GAP coverage rates from Allstate are approximately $20 per six-month period.
Liberty Mutual: Liberty Mutual GAP coverage ranges from $5 to $15 per month.
Nationwide: Nationwide provides GAP insurance coverage for vehicles that are six years old or newer.
Progressive: The average price of GAP insurance with Progressive is $5 per month. GAP insurance under Progressive will pay as much as 25% more than your car’s depreciated value.
Travelers: GAP insurance from Travelers can add approximately 5% to your comprehensive and collision premium.
USAA: USAA doesn’t have standard GAP insurance. Instead, USAA has Total Loss Protection coverage. Total Loss Protection is available only for customers who have an auto loan with USAA.
Read more:
- Does State Farm offer GAP insurance?
- Does Allstate offer GAP insurance?
- Travelers Auto Insurance Review
Is GAP insurance worth it?
GAP insurance is best for those who:
- Put less than a 20% down payment on the vehicle
- Have an auto loan longer than 60 months, or
- Are leasing a vehicle
GAP insurance can also be applied to businesses. Business insurance has several different coverage options that can be bundled to create the optimal package for business needs.
Businesses utilizing vehicles or fleets of vehicles or trucks may find GAP insurance handy, especially if the vehicles are financed.
Determining if GAP insurance is right for you depends on how much additional coverage you feel you may need.
If you have a long-term auto loan or lease, GAP insurance can offer extra protection and help you get the proper payout in the case of a total loss.
GAP insurance is offered with most auto insurance providers as well as car dealerships. Coverage through an auto insurance provider will only add an average of $30 to your premium per month. Some providers offer GAP as low as an additional $5 per month.
When your loan is fully paid or the balance owed is lower than the vehicle’s depreciated value, you can remove GAP insurance from your auto insurance policy.
Search insurance with GAP coverage quotes near you by typing your ZIP code in the free tool below.
Case Studies: Top GAP Insurance Provider
Case Study 1: John’s Vehicle Replacement
John bought a $60,000 luxury car, but it was totaled in an accident after six months. Luckily, he had GAP insurance, which covered his outstanding loan of $55,000, despite the car’s current value of $48,000. This prevented a major financial loss and enabled him to get a new car without extra costs.
Case Study 2: Sarah’s Stolen Car
Sarah’s car was stolen, causing distress and financial concerns. Luckily, she had GAP insurance, which proved valuable when her car was declared a total loss. While her standard insurance covered the market value of $20,000, the GAP insurance covered the remaining loan balance of $25,000, allowing her to pay off her auto loan completely.
Case Study 3: Michael’s Accident Write-off
Michael’s $35,000 pickup truck was written off after an accident, leaving him with a loan balance of $30,000. Thankfully, his GAP insurance stepped in and covered the remaining balance, despite the truck’s depreciated value of $25,000. This relieved Michael of any debt and enabled him to move on with a new vehicle.
Case Study 4: Emily’s Total Loss
Emily financed her dream sports convertible for $50,000 but it was totaled in a collision. Luckily, she had GAP insurance, which covered the remaining loan balance of $45,000, despite the car’s depreciated value of $40,000. This prevented a major financial setback and relieved Emily of any lingering obligations.
Case Study 5: David’s Theft and Unpaid Balance
David’s car was stolen while he was on vacation, and his insurance covered the market value of $15,000. However, he still owed $18,000 on the loan. Luckily, his GAP insurance covered the remaining $3,000, preventing additional financial strain and unpaid debts.
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Frequently Asked Questions
What is GAP insurance?
GAP (Guaranteed Asset Protection) insurance is a type of insurance coverage that helps bridge the gap between the actual cash value of a vehicle and the amount owed on a loan or lease in the event of a total loss due to theft or accident.
Which is the top GAP insurance provider?
While the market is competitive and preferences can vary based on individual needs, several top GAP insurance providers are known for their reputable services. Some of the leading providers include:
- Allstate Insurance: Allstate offers GAP insurance coverage that protects against the financial loss of a totaled vehicle. They have a strong presence in the insurance industry and provide reliable coverage options.
- Progressive Insurance: Progressive is a well-known insurance company that offers comprehensive GAP insurance coverage to protect vehicle owners from financial loss. They provide competitive rates and flexible payment options.
- State Farm Insurance: State Farm is one of the largest insurance providers in the United States and offers GAP insurance to protect vehicle owners. They have a vast network of agents and provide personalized customer service.
- Nationwide Insurance: Nationwide is another top insurance provider that offers GAP insurance coverage. They have a strong financial standing and provide reliable protection for vehicle owners.
- Geico Insurance: Geico is a popular insurance company known for its competitive rates. They also offer GAP insurance coverage to help protect against financial loss in the event of a total loss.
How do I purchase GAP insurance?
To purchase GAP insurance, you can typically consider the following options:
- Through your dealership: Many car dealerships offer GAP insurance as part of their finance and insurance packages when you purchase or lease a vehicle. However, it’s important to carefully review the terms and costs associated with the dealership’s offering.
- Through an insurance company: Contact reputable insurance companies, such as the ones mentioned earlier, and inquire about their GAP insurance coverage options. They can provide you with the necessary information and guide you through the purchasing process.
- Online insurance providers: Several online insurance providers offer GAP insurance. You can visit their websites, request quotes, and compare coverage options to find the best policy for your needs.
How much does GAP insurance cost?
The cost of GAP insurance can vary depending on several factors, including the value of your vehicle, the length of your loan or lease, and the insurance provider you choose. Generally, the cost of GAP insurance ranges from a few hundred dollars to a few thousand dollars over the term of the policy. It’s advisable to request quotes from different providers and compare the coverage and costs to make an informed decision.
Is GAP insurance necessary?
While GAP insurance is not legally required, it can be highly beneficial in certain situations. If you have a loan or lease on a vehicle and the outstanding balance is greater than the vehicle’s actual cash value, GAP insurance can protect you from financial loss if the vehicle is declared a total loss. It can cover the difference between the insurance payout and the amount you owe, ensuring you are not left with a significant financial burden. Consider your individual circumstances, the value of your vehicle, and the terms of your loan or lease to determine if GAP insurance is necessary for you.
Compare Insurance Providers Rates to Save Up to 75%
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Diego Anderson
Licensed Real Estate Agent
Diego Anderson is a Real Estate Agent based in the Bay Area of California. Having received his Real Estate License at the age of 18, he wasted no time learning the ins and outs of the industry. With a focus on residential dual agency, he has a passion for supporting and educating families on their home buying and selling decisions. He is no stranger to new builds and new developments. He also r...
Licensed Real Estate Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.