Best Gap Insurance in 2024 (Find the Top 10 Companies Here)
Allstate, USAA, and Geico are the best gap insurance providers, and rates start at $11 per month. These top gap insurance companies offer coverage for up to 25% of your car’s actual cash value. They provide reliable service and flexible policies, ensuring financial protection when your vehicle is totaled.
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Travis Thompson
Licensed Insurance Agent
Travis Thompson has been a licensed insurance agent for nearly five years. After obtaining his life and health insurance licenses, he began working for Symmetry Financial Group as a State Licensed Field Underwriter. In this position, he learned the coverage options and limits surrounding mortgage protection. He advised clients on the coverage needed to protect them in the event of a death, critica...
Licensed Insurance Agent
UPDATED: Sep 20, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Sep 20, 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 companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Company Facts
Full Coverage for Gap Insurance
A.M. Best Rating
Complaint Level
Pros & Cons
Company Facts
Full Coverage for Gap Insurance
A.M. Best Rating
Complaint Level
Pros & Cons
The top picks overall for the best gap insurance are Allstate, USAA, and Geico, with starting rates as low as $11 per month. When choosing the best gap insurance, it’s essential to evaluate factors like coverage and affordability, and these providers excel in both areas.
Allstate, USAA, and Geico offer strong financial protection, ensuring you’re shielded from substantial out-of-pocket costs if your vehicle is totaled.
Our Top 10 Company Picks: Best Gap Insurance
Company | Rank | Good Driver Discount | A.M. Best | Best For | Jump to Pros/Cons |
---|---|---|---|---|---|
#1 | 11% | A+ | Add-on Coverages | Allstate | |
#2 | 10% | A++ | Military Members | USAA | |
#3 | 12% | A++ | Senior Discounts | Geico | |
#4 | 7% | A+ | Accident Forgiveness | Nationwide | |
#5 | 9% | A | Loyalty Rewards | American Family | |
#6 | 10% | B | Student Savings | State Farm | |
#7 | 8% | A+ | Competitive Rates | Progressive | |
#8 | 9% | A | 24/7 Support | Liberty Mutual | |
#9 | 8% | A | Family Plans | Farmers | |
#10 | 7% | A++ | Safe Drivers | Travelers |
Compare car insurance quotes from these leading companies to find the best balance of cost and coverage.
To find out who offers the best gap insurance coverage rates for your financed vehicle, enter your ZIP code into our free tool above to compare gap car insurance quotes.
- Gap insurance covers the difference between car value and loan balance
- Top gap insurance starts at $62 per month from leading providers
- Allstate is the top pick for comprehensive and reliable gap coverage
#1 – Allstate: Top Overall Pick
Pros
- High Coverage Limits: Based on Allstate home insurance review & complaints, Allstate offers comprehensive gap insurance with high coverage limits.
- Variety of Discounts: Numerous discounts are available for bundling and safe driving in gap insurance.
- Strong Financial Stability: Known for financial stability and reliability in gap insurance.
Cons
- Higher Rates: Rates of $15 per month for minimum coverage are considered high for gap insurance.
- Customer Service Issues: Mixed reviews on customer service and claims handling for gap insurance.
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#2 – USAA: Best for Military Members
Pros
- Competitive Rates: USAA offers rates at $11 per month for minimum coverage, often including gap insurance for military families.
- Excellent Customer Service: High ratings for customer service and support in gap insurance.
- Comprehensive Gap Coverage: Covers up to 25% of the car’s actual cash value with gap insurance.
Cons
- Eligibility Restrictions: Gap insurance is available only to military members and their families. To gain additional insights, check out our comprehensive guide titled “USAA Insurance Review & Complaints.“
- Limited Local Agents: Fewer local agents are available compared to national competitors for gap insurance.
#3 – Geico: Best for Senior Discounts
Pros
- Affordable Rates: Based on Geico insurance review & complaints, Geico offers competitive rates for gap insurance, starting at $13 per month for minimum coverage.
- Strong Financial Stability: High ratings for financial stability and reliability in gap insurance.
- User-Friendly App: An easy-to-use app for managing your gap insurance policy and claims.
Cons
- Discount Limits: Discounts may not be as high as those offered by some competitors for gap insurance.
- Customer Service: Mixed reviews regarding customer service responsiveness for gap insurance
#4 – Nationwide: Best for Accident Forgiveness
Pros
- Competitive Pricing: Nationwide offers rates starting at $14 per month for minimum coverage in gap insurance.
- Broad Coverage: Offers extensive gap insurance coverage options. For more details, refer to our detailed guide named “Nationwide Insurance Review & Complaints.“
- Good Customer Satisfaction: Generally high customer satisfaction ratings for gap insurance.
Cons
- Higher Premiums: Rates for some drivers may be higher compared to other companies for gap insurance.
- Complex Policy Terms: Some users find the policy details complicated for gap insurance.
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#5 – American Family: Best for Loyalty Rewards
Pros
- Affordable Rates: American Family offers gap insurance at $14 per month for minimum coverage.
- Good Coverage Limits: Comprehensive coverage that includes up to 25% of your car’s value with gap insurance.
- Discount Opportunities: Various discounts are available for safe driving and bundling with gap insurance.
Cons
- Customer Service Variability: Mixed reviews on the quality of customer service for gap insurance.
- Regional Availability: Coverage options for gap insurance can vary by region. For more understanding, examine our extensive guide named “American Family Insurance Review & Complaints.“
#6 – State Farm: Best for Student Savings
Pros
- Comprehensive Coverage: State Farm excels in providing comprehensive coverage with gap insurance.
- Bundling Discounts: Significant discounts for bundling multiple insurance policies with gap insurance.
- Wide Availability: Extensive network of agents and offices for gap insurance. To gain more knowledge, consult our in-depth guide called “State Farm Insurance Review & Complaints.“
Cons
- Higher Premiums: Premiums at $12 per month may be higher compared to those of some competitors for gap insurance.
- Limited Multi-Policy Discounts: Multi-policy discounts are lower compared to some competitors for gap insurance.
#7 – Progressive: Best for Competitive Rates
Pros
- Lowest Monthly Rates: Progressive offers the lowest rates for gap insurance, starting at $19 per month for minimum coverage.
- Comprehensive Coverage: Progressive’s gap insurance covers up to 25% of your car’s actual cash value. To understand better, look at our detailed guide called “Progressive Insurance Review & Complaints.“
- Flexible Policy Options: Offers a range of add-on options to suit different coverage needs for gap insurance.
Cons
- Limited Discounts: Fewer multi-policy and bundling discounts compared to competitors for gap insurance.
- Customer Service: Some reviews mention slower response times for customer service in gap insurance.
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#8 – Liberty Mutual: Best for 24/7 Support
- Wide Coverage Options: Liberty Mutual offers extensive gap insurance coverage. See more details at Liberty Mutual insurance review & complaints.
- Competitive Rates: Rates are set at $18 per month for minimum coverage with gap insurance.
- Bundling Discounts: Significant savings for bundling gap insurance with other types of insurance.
Cons
- Higher Cost: Rates are relatively high compared to other providers for gap insurance.
- Customer Service: Mixed reviews regarding the quality of service for gap insurance.
#9 – Farmers: Best for Family Plans
Pros
- Extensive Coverage: Farmers offers comprehensive gap insurance coverage. For further knowledge, look at our detailed guide titled “Farmers Insurance Review & Complaints.“
- High Coverage Limits: Covers up to 25% of your car’s actual cash value with gap insurance.
- Discount Opportunities: Various discounts for safe driving and bundling are available with gap insurance.
Cons
- Highest Premiums: Premiums are highest at $16 per month for gap insurance.
- Complex Policy Options: Some find the policy terms complex and difficult to navigate for gap insurance.
#10 – Travelers: Best for Safe Drivers
Pros
- Solid Coverage Options: Travelers provides reliable gap insurance coverage.
- Flexible Policies: Offers flexible policy options and add-ons for gap insurance. To dive deeper, refer to our complete guide called “Travelers Insurance Review & Complaints.“
- Customer Satisfaction: Generally positive customer satisfaction ratings for gap insurance.
Cons
- Highest Rates: Premiums are among the highest at $16 per month for minimum coverage with gap insurance.
- Limited Discounts: Fewer discount opportunities compared to other providers for gap insurance.
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Cost of Gap Insurance
Gap insurance serves as a crucial financial safeguard for vehicle owners, especially when considering the cost of gap insurance at the dealership. While dealers may offer this coverage, it often comes at a significantly higher price, potentially adding interest to the overall cost of gap insurance at dealership.
Gap Insurance Cost by Provider
Insurance Company | Monthly Rates |
---|---|
$15 | |
$14 | |
$16 | |
$13 | |
$18 | |
$14 | |
$19 | |
$12 | |
$16 | |
$11 |
However, savvy consumers can opt for cheap gap insurance alternatives through their primary auto insurance policy, such as those provided by State Farm or Progressive, where adding gap coverage may only result in a modest increase in premiums, offering a cheap gap insurance quote compared to dealership offerings.
You can also purchase it from your dealer when you buy your. This will cost you around $50 per month and will usually be rolled into the cost of your loan. This means that you will be paying interest for your coverage. It doesn’t make financial sense to spend so much extra through your dealer.
You can also purchase just a, but that will also cost you several hundred dollars. Since insurance companies only pay the actual cash value for your totaled vehicle when making payment of a claim, you may find yourself owing thousands of dollars to your lender. Gap insurance prevents that from happening.
Policy for Gap Insurance
Gap is an acronym that stands for guaranteed asset protection. Gap insurance provides insurance that helps cover the difference between what cars are worth and what is still owed on loans. A gap policy is available as an add-on to your insurance policy.
Often, the best gap insurance companies cannot compete with standard car insurance providers and loan lenders when it comes to affordability. Whether you’re purchasing a new car with a potential for depreciation or leasing a vehicle, to buy gap insurance can provide invaluable financial protection.
Car Insurance Discounts From the Top Providers for Gap
Insurance Company | Available Discounts |
---|---|
Multi-Policy Discount, Good Driver Discount, New Car Discount, Automatic Payment Discount | |
Multi-Policy Discount, Vehicle Safety Features Discount, Loyalty Discount, Bundled Insurance Discount | |
Multi-Policy Discount, Good Driver Discount, Automatic Payment Discount, Vehicle Safety Features Discount | |
Good Driver Discount, New Car Discount, Loyalty Discount, Bundled Insurance Discount | |
Vehicle Safety Features Discount, Multi-Policy Discount, Loyalty Discount, Automatic Payment Discount | |
Good Driver Discount, New Car Discount, Multi-Policy Discount, Military Discount | |
New Car Discount, Good Driver Discount, Loyalty Discount, Bundled Insurance Discount | |
Multi-Policy Discount, Vehicle Safety Features Discount, Good Driver Discount, Loyalty Discount | |
Vehicle Safety Features Discount, Multi-Policy Discount, Bundled Insurance Discount, Good Driver Discount | |
Military Discount, Multi-Policy Discount, New Car Discount, Good Driver Discount |
Whether you’re buying a new or used car, read our guide to learn why you should add gap coverage to your policy. It could help you save thousands. Continue reading to learn where you can buy many types of coverage options.
Benefits of Gap Insurance
Gap insurance is designed to cover the difference between your car’s actual cash value and the remaining loan balance if your vehicle is totaled. This insurance is particularly beneficial if you owe more on your loan than the car is worth, a situation known as negative equity.
Allstate is the top overall pick for gap insurance, offering reliable coverage and competitive rates.
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When you have gap insurance, it pays off the remaining loan amount, preventing you from having to cover the shortfall out of pocket. You can purchase gap insurance through car dealers, though it will accrue interest with your loan payments.
For leased vehicles, lease gap insurance covers the difference between the car’s value and the unpaid lease balance if the vehicle is totaled. Many major insurers, including Allstate, USAA, and Geico, offer gap insurance, providing you with options to protect your financial investment in your car. (Read More: Full Coverage Car Insurance).
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Coverage for Gap Insurance
Gap insurance is essential if you owe more on your car than its worth. If your vehicle is totaled, standard insurance only covers the car’s actual cash value, not your loan balance. For example, a $30,000 car depreciates to $26,300 immediately. If it’s totaled, you’d still owe $3,700. Gap insurance covers this gap, saving you from out-of-pocket costs.
Major insurers like Progressive and State Farm offer gap coverage. Third-party providers can also offer competitive rates. Compare quotes to find the best and most affordable option. Keep reading to discover top gap insurance providers and how to secure low rates (Read more: Best Car Insurance Discounts).
Stand-Alone Gap Insurance
Stand-alone gap insurance is a separate policy that covers the difference between your car’s loan balance and its actual value if it’s totaled or stolen. When choosing a provider, it’s crucial to compare prices, read consumer reviews, and assess the company’s reputation.
While national companies like gap direct offer stand-alone policies, reviews may vary, so research is essential. Stand-alone gap insurance often costs more than adding gap coverage to your existing car insurance or getting it through your lender, making price comparison vital for securing the best deal. To learn more, consult our in-depth guide titled “Best Car Insurance Quotes by Vehicle.“
Choose the Best Company for Gap Insurance
To choose the best company for gap car insurance, start by comparing coverage options and limits from various providers. Look for a company that offers comprehensive coverage for the difference between your car’s value and the remaining balance on your loan or lease.
Evaluate the company’s financial stability, customer service reputation, and claim handling efficiency.
Additionally, consider the cost of the policy and any discounts that may apply. Reading customer reviews and seeking recommendations can also help in making an informed decision. See more details in our article titled, “Car Insurance Requirements.“
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Progressive Sell Gap Insurance
Progressive Insurance provides nationwide coverage and is renowned for its affordability, making it an attractive option for many. Among their offerings is gap insurance, also known as loan/lease payoff insurance, which is designed to cover the difference between the actual cash value of your vehicle and the remaining balance on your loan or lease in the event of a total loss.
This coverage, available for just five extra dollars per month, offers substantial financial protection by paying up to 25% above the vehicle’s actual cash value. While it doesn’t guarantee the full payoff of your loan, it greatly eases the financial strain of replacing a totaled vehicle.
Customers can easily obtain a gap insurance quote through Progressive, and the coverage can be added to an existing policy or through an agent. However, for those seeking more comprehensive car insurance replacement coverage, other options may be worth exploring.
AAA Sell Gap Insurance
AAA offers gap insurance through both its auto financing department and as an add-on for insurance policyholders, though availability varies by state.
While AAA’s car insurance rates may not be the lowest, they provide a range of coverage options, including gap coverage, with an average cost of around $395 according to their website. Although this is higher than Progressive’s rates, the coverage offered by AAA is comprehensive.
Additionally, AAA allows you to maintain gap coverage even if you finance your vehicle through them without needing to switch insurance providers. Despite not being the most budget-friendly option, AAA is known for its positive customer reviews and high satisfaction rates, which could make paying more upfront worthwhile for those who value a better customer experience.
More details are available at AAA Auto Insurance Review & Complaints: Auto, Home, Life, Travel & Wedding Insurance.
State Farm Sell Gap Insurance
State Farm, the largest car insurance company in America, offers gap insurance known as Payoff Protector. This coverage is included with State Farm Bank auto loans, unlike AAA, where gap insurance is separate. Financing through State Farm ensures you’re covered for the difference between your car’s actual cash value and the remaining loan balance in the event of a total loss.
Additionally, customers can easily manage their loans and access information, such as the State Farm auto loan payoff amount, through their online accounts or by contacting the company directly. With no membership fees required, State Farm offers a competitive and convenient option for those seeking comprehensive coverage and peace of mind.
There are other auto providers besides Allstate, AAA, and Progressive. Ultimately, the best car insurance with gap coverage could be different for everyone.
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Shopping for Gap Insurance
While Allstate, USAA, and Geico are often recommended for gap coverage, you might find cheaper rates by exploring other companies.
It’s crucial to compare options, as some insurers adjust rates based on your credit score and customer reviews can provide insights into how well a company aligns with your needs. Remember, the cheapest gap insurance isn’t always the best, so consider both cost and coverage quality. Avoid rolling gap coverage into your loan, as this can lead to higher overall costs and interest.
Instead, shop around to find a great deal, whether as an add-on or part of a specific policy. If changing insurers isn’t desirable, you might consider refinancing your loan and adding gap coverage later. This coverage is only necessary until your loan balance is lower than your vehicle’s value (Read more: Best Texas Gap Insurance Coverage).
Case Studies: Real-World Scenarios on Gap Insurance Coverage
To better understand the practical benefits of gap insurance, examining real-world scenarios can be highly informative. These case studies provide insight into how gap insurance can impact various situations, helping you see the tangible benefits and potential pitfalls. By exploring these examples, you can gain a clearer picture of how gap insurance might fit into your own financial planning.
- Case Study #1 – State Farm Gap Insurance Coverage: John’s car was totaled, and while his insurance covered the actual cash value, it didn’t cover the full loan balance. Fortunately, State Farm’s gap insurance paid the difference, saving him from a large out-of-pocket expense. This highlights the importance of having gap insurance.
- Case Study #2 – Stand-Alone Gap Insurance Policy: Sarah’s stand-alone gap insurance covered the difference between her leased vehicle’s actual cash value and the remaining lease balance when it was totaled. Despite the higher upfront cost, her research and positive reviews ensured she was protected from significant financial loss.
- Case Study #3 – Affordable Gap Insurance Rates: Mark compared gap insurance quotes using an online tool and found an insurer offering affordable coverage as an add-on. This enabled him to get the necessary protection without overspending, showing that careful comparison can lead to cost-effective solutions.
These case studies highlight how gap insurance can protect you in various scenarios. Whether purchasing a new car, leasing, or seeking cost-effective options, these examples can guide you in choosing the right coverage for your needs and budget. To acquire more information, review our in-depth guide named “Gap Insurance Coverage.“
You can also enter your ZIP code below into our free comparison tool to start comparing rates now.
Frequently Asked Questions
Can I buy stand-alone Gap insurance?
Yes, stand-alone gap insurance is available, but it is often more expensive than adding it to your current auto insurance policy (Read more: Auto-Owners Insurance Review & Complaints)
What is Gap insurance?
Gap insurance covers the difference between a car’s actual cash value and the remaining loan balance if the vehicle is totaled or stolen. Instantly compare quotes by entering your ZIP code below.
Do I need Gap insurance?
If you owe more on your car loan than the vehicle’s current value, gap insurance is recommended to avoid out-of-pocket costs in case of a total loss.
How much does Gap insurance cost?
Gap insurance typically costs between $5 and $20 per month when added to an existing policy. Stand-alone policies can cost more.
Can I add Gap insurance to my current auto policy?
Yes, you can add gap insurance to your existing policy at any time, even after purchasing the vehicle. For more insights, consult our complete guide titled “What is gap insurance and do I need it when filling a car insurance claim?”
Is it better to buy Gap insurance from a dealer or insurance provider?
It’s generally cheaper to buy gap insurance through an insurance provider rather than a dealership, as dealers often add extra fees and interest.
How do I know if I have Gap insurance?
Review your auto insurance policy documents or contact your provider to confirm if you have gap insurance.
How does Gap insurance work after a car is totaled?
If your car is totaled, Gap insurance pays the difference between the actual cash value and the remaining loan balance, protecting you from paying the gap.
Is Gap insurance available for leased cars?
Yes, Gap insurance is available for leased vehicles and is often recommended due to the rapid depreciation of new cars. To understand better, look at our detailed guide called “What is a car insurance claim?”
Can I cancel Gap insurance once my loan is paid off?
Yes, once your loan is paid off or you no longer owe more than the vehicle’s worth, you can cancel gap insurance. Start comparing affordable insurance options by entering your ZIP code below free quote comparison tool today.
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Travis Thompson
Licensed Insurance Agent
Travis Thompson has been a licensed insurance agent for nearly five years. After obtaining his life and health insurance licenses, he began working for Symmetry Financial Group as a State Licensed Field Underwriter. In this position, he learned the coverage options and limits surrounding mortgage protection. He advised clients on the coverage needed to protect them in the event of a death, critica...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.