Best GAP Insurance Providers in 2022
Many car insurance companies offer GAP insurance to help drivers pay down a loan or lease of a car after it has been totaled or stolen. However, sometimes there are special requirements in order to qualify.
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UPDATED: Mar 16, 2022
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- Most car insurance companies offer GAP insurance at a low monthly cost, which can provide relief for your car loan or lease after your vehicle is declared a total loss
- Some car insurance companies require a car to be a late model or no more than several years old to get GAP insurance coverage
- GAP insurance will cover a totaled car or stolen vehicle
Finding the right car insurance company and the best optional GAP insurance providers can be difficult. It may be hard to know which company has the best benefits and rates, but browsing your options can give you some answers.
GAP insurance can be essential to protect your car’s value and ensure you do not have to go long without a vehicle. With low monthly costs that depend on your driving history and car’s value, GAP insurance can save you a lot of time and headache when you find yourself needing a new car.
Many GAP insurance providers offer competitive rates. Some companies may have stipulations about your car’s age, status, and current insurance coverage, but they may also give payouts that exceed your expectations.
To get accurate, personalized rates, use your ZIP code in our free car insurance comparison tool to see which companies have the best deals on the market for you.
What is GAP insurance?
GAP insurance is an optional insurance coverage package that covers some of an outstanding car loan or lease agreement after your car is declared a total loss by your insurance company. Additionally, GAP insurance will assist in paying for the remaining lease or loan on a stolen vehicle.
GAP is an acronym that stands for Guaranteed Auto Protection, meaning that your insurance company offers coverage for a certain amount of your car’s total value. GAP insurance protects your car’s value and ensures that a portion of that overall value is covered if your car is totaled or stolen. Some insurance companies have requirements on which cars they will cover and who is eligible.
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Who benefits from GAP insurance?
Drivers who have a large loan or lease amount would benefit from getting GAP insurance. GAP insurance offers a certain percentage of your car’s value to help pay off your totaled car’s loan or lease after an accident.
While GAP insurance won’t pay for a new car, it can ease the cost of your totaled vehicle’s loan or lease. In addition, GAP insurance covers cars damaged to the point where they are unrecoverable or stolen.
GAP insurance assists collision and comprehensive coverage. However, GAP insurance is different because comprehensive coverage will cover totaled cars, stolen vehicles, or those damaged beyond recovery. It will also pay out for the loan or lease of an unrecoverable car. Comprehensive coverage will reimburse you for the overall value of your vehicle and cover all vandalism, theft, and weather damage.
The Best GAP Insurance Providers in 2022
Many companies offer competitive GAP insurance coverage. Among these car insurance companies are some of the most reputable names on the market. Alongside reliable customer service, shining reviews, and dependability, these companies have some of the best insurance coverage available.
Some companies may have more stringent requirements to begin a GAP insurance policy than others but may also offer significant sums of money as a payout for your GAP insurance refund. Additionally, many car insurance companies allow you to use excess funds from your GAP insurance refund to apply for a new car loan after paying off your previous car loan or lease.
Nationwide offers up to 25% of your car’s overall value as a GAP insurance refund, which can pay off a loan or lease. Excess funds may assist in the cost of a new vehicle in some cases. However, Nationwide has some requirements for drivers to meet before they become eligible for a GAP insurance policy.
With Nationwide, a car can be no older than six years old. Additionally, your driving history, traffic violations, and driving-related arrests determine the monthly cost of your GAP insurance policy.
GAP insurance with Progressive costs about $5 per month but varies depending on the driver’s history and traffic violations. Citations, fees, and arrests may cause GAP insurance premiums to rise. Over a year, a driver with a good history and few traffic incidents may only pay around $20 a year for GAP insurance with Progressive.
Progressive will offer a GAP insurance refund for 25% of your car’s total value. This percentage means that if your vehicle is worth $20,000, you will likely get a refund of $5,000 to pay off your loan or lease.
Liberty Mutual also offers GAP insurance for a low rate. Like other car insurance companies, Liberty Mutual will cover 25% of your car’s overall value as a refund to apply toward your loan or lease. Liberty Mutual may cost a little more than $5 per month, but likely no more than $10, depending on your driving history.
Travelers Insurance has competitive GAP insurance pricing, though it is dependent on the driver’s history. Travelers Insurance pays the remaining amount of your loan or lease using their GAP insurance policy by subtracting your vehicle’s value from the amount you still owe on the agreement.
For only about $20 over six months, Allstate offers GAP insurance. Allstate offers personalized terms and rates, meaning that those interested in Allstate must provide driver history and information to start GAP coverage.
While The Hartford offers relatively low rates for GAP insurance, their terms are dependent on driver history and several other factors. However, they encourage drivers to purchase optional GAP insurance alongside full coverage to get the most out of their insurance policies.
Esurance also offers GAP insurance as an optional addition to an insurance policy. Esurance boasts an inexpensive monthly cost for GAP insurance and has a GAP refund limit of 25% of your car’s overall value. You may not be entitled to 25%, but any bit of the refund can help pay off the loan or lease you have on your totaled or stolen car.
Esurance offers GAP insurance estimates dependent on a driver’s history and any traffic incidents on their record.
GAP Insurance Is Essential for Those With Loans or Leases
Finding the right company to purchase your GAP insurance from can be difficult, but the companies listed here are some of the most inexpensive and credible on the market. GAP insurance can be vital for drivers with high loans or leases on their cars. Without GAP insurance coverage, drivers risk having multiple car loans or lease agreements, and they may also end up owing more money than they can afford. GAP insurance can prevent high loans or lease agreements to keep your stress low.
With the low monthly cost of most GAP insurance coverages, the risk is minimal. The value of having enough money to pay off your loan or lease and start fresh with a new car is crucial.
Since there are many GAP insurance providers on the market, finding the right one can be difficult. However, using your ZIP code in our free car insurance comparison tool can help you find all the best estimates for you and your needs.