Best Gap Car Insurance in 2024 (Top 10 Companies)
Progressive, State Farm, and Allstate provide the best gap car insurance, offering comprehensive plans with rates starting from $68. With their reputation for reliability and customer satisfaction, they ensure peace of mind and financial security in case of total loss incidents.
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Kristine Lee
Licensed Insurance Agent
Kristine Lee is a licensed insurance agent and one of The Zebra’s in-house content strategists. With a background in copywriting, she covers the ins and outs of the home and car insurance industries. She has been a contributor to numerous publications focused on the nuances of insurance, including on The Points Guy.
Licensed Insurance Agent
UPDATED: Sep 29, 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 company and cannot guarantee quotes from any single insurance company.
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 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 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 29, 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 company and cannot guarantee quotes from any single insurance company.
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 above to use the free quote tool. The more quotes you compare, the more chances to save.
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13,128 reviewsCompany Facts
Full Coverage for Gap Insurance
A.M. Best Rating
Complaint Level
Pros & Cons
13,128 reviews
17,759 reviewsCompany Facts
Full Coverage for Gap Insurance
A.M. Best Rating
Complaint Level
Pros & Cons
17,759 reviews
11,413 reviewsCompany Facts
Full Coverage for Gap Insurance
A.M. Best Rating
Complaint Level
Pros & Cons
11,413 reviewsThe best gap car insurance are Progressive, State Farm, and Allstate, offering competitive rates starting from $68. These top-tier companies stand out not just for their affordability but also for their comprehensive coverage options and excellent customer service.
With Gap insurance bridging the financial gap between a vehicle’s value and loan balance, selecting the right provider is crucial for ensuring peace of mind and financial security in unforeseen circumstances.
Our Top 10 Company Picks: Best Car Insurance for Gap Insurance
| Company | Rank | Gap Discount | Multi-Car Discount | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 10% | 12% | Enhanced Coverage | Progressive |
 | #2 | 30% | 15% | Trusted Provider | State Farm |
 | #3 | 25% | 20% | Comprehensive Care | Allstate |
 | #4 | 20% | 15% | Vanishing Deductible | Nationwide |
 | #5 | 12% | 10% | New Car Replacement | Liberty Mutual |
 | #6 | 15% | 12% | Customized Coverage | Farmers |
 | #7 | 20% | 18% | Premier Protection | Travelers |
 | #8 | 18% | 14% | KnowYourDrive Program | American Family |
 | #9 | 25% | 13% | Competitive Rates | Erie |
 | #10 | 10% | 10% | Big Discounts | Geico |
Dive into this guide to discover why these three companies are the optimal choices for Gap coverage.
Explore our picks with finding reasonable car insurance rates to find the best fit for your requirements, get quotes, and start saving on your car insurance today.
- Progressive offer the best car insurance for Gap insurance
- Gap insurance covers vehicle value versus loan balance
- Right car insurance crucial for Gap coverage peace
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#1– Progressive: Top Overall Pick
Pros
- Versatile Coverage Options: Progressive goes beyond the standard, offering a spectrum of coverage options that ensure enhanced protection for your unique needs.
- Generous Multi-Car Discount: Enjoy substantial savings with Progressive’s multi-car discount, providing up to a 12% reduction when insuring multiple vehicles. Learn more in our Progressive insurance review & ratings.
- Gap Insurance Discount: Progressive understands the value of your investment, offering up to a 10% discount for Gap insurance, securing your vehicle’s financial safety.
Cons
- Limited Gap Discount: While Progressive provides a discount, it may not be the most substantial among competitors, warranting consideration for specific financial situations.
- Varied Rates: Pricing may lean towards the higher side for certain demographic profiles, prompting potential customers to compare quotes for the best deal.
#2 – State Farm: Best for Trusted Provider
Pros
- Exemplary Reliability: State Farm is renowned for its reliability, upholding a legacy of trust and consistently delivering high levels of customer satisfaction. More information is available about this provider in our State Farm insurance review & ratings.
- Highly Favorable Multi-Car Discount: State Farm offers substantial savings with a multi-car discount of up to 15%, making it an ideal choice for families or multiple-car households.
- Impressive Gap Insurance Discount: State Farm stands out by offering an impressive up to 30% discount for Gap insurance, ensuring comprehensive coverage for your vehicle.
Cons
- Potential for Higher Premiums: While State Farm offers reliability, some customers may find the premiums relatively higher, especially in comparison to other providers.
- Limited Emphasis on New Car Replacement: State Farm’s focus on new car replacement coverage may be less pronounced compared to some competitors, potentially affecting those with newer vehicles.
#3 – Allstate: Best for Comprehensive Care
Pros
- Extensive Coverage Options: Allstate prides itself on offering a broad range of coverage options, ensuring comprehensive care that addresses your specific needs.
- Competitive Rates: Benefit from competitive rates with Allstate, enjoying up to a 25% discount for Gap insurance that aligns with your budget. Read up on the Allstate insurance review & ratings for more information.
- Highly Attractive Multi-Car Discount: Allstate provides a high multi-car discount of up to 20%, making it an economical choice for households with multiple vehicles.
Cons
- Occasional Complaints: While Allstate maintains a generally low complaint level, some customer reviews suggest occasional dissatisfaction, highlighting the importance of customer experience consideration.
- Possibly Higher Rates: Depending on your profile, rates with Allstate could be relatively higher, necessitating thorough comparison shopping for the best value.
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#4 – Nationwide: Best for Vanishing Deductible
Pros
- Innovative Safe Driving Rewards: Nationwide’s Vanishing Deductible program rewards safe driving habits, adding significant value to policyholders.
- Multi-Car Savings: Nationwide offers up to a 15% discount for insuring multiple cars, providing substantial savings for households with multiple vehicles. Check out insurance savings in our complete Nationwide insurance review & ratings.
- Competitive Gap Insurance Discount: Nationwide ensures comprehensive protection with up to a 20% discount for Gap insurance, aligning with your financial security needs.
Cons
- Varied Customer Experiences: Some customers may encounter inconsistent service levels, emphasizing the importance of personalized experiences.
- Coverage Limitations: Policies may not cover specific needs as comprehensively as desired, requiring additional consideration for those with unique coverage requirements.
#5 – Liberty Mutual: Best for New Car Replacement
Pros
- New Car Replacement Specialist: Liberty Mutual review & ratings specializes in new car replacement coverage, offering up to a 10% discount, ensuring ultimate security for your investment.
- Multi-Car Savings: Enjoy savings with up to a 10% discount for insuring multiple cars, making Liberty Mutual an economical choice for families with multiple vehicles.
- Competitive Gap Insurance Discount: Liberty Mutual provides up to a 12% discount for Gap insurance, ensuring financial security for your vehicle.
Cons
- Possibly Higher Premiums: Some customers may find premiums from Liberty Mutual comparatively higher, necessitating careful consideration of budget constraints.
- Coverage Limitations: While Liberty Mutual offers competitive coverage, certain specialized coverages may not be as extensive as with other providers, requiring scrutiny for those with unique coverage needs.
#6 – Farmers: Best for Premier Protection
Pros
- Customized Coverage Options: Farmers stands out by offering tailored coverage options that meet the specific needs of individual policyholders. Discover more about offerings in our Farmers insurance review & ratings.
- Attractive Multi-Car Discount: Enjoy savings with up to a 12% discount for insuring multiple cars, making Farmers an economical choice for households with more than one vehicle.
- Gap Insurance Discount: Farmers provides up to a 15% discount for Gap insurance, ensuring comprehensive coverage for your vehicle’s financial protection.
Cons
- Varied Customer Experiences: Some customers may encounter inconsistent service levels, emphasizing the importance of personalized experiences.
- May not be the Most Cost-Effective: Rates with Farmers may vary, and for some profiles, they could be comparatively higher, prompting potential customers to explore multiple quotes.
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#7 – Travelers: Best for Premier Protection for Peace of Mind
Pros
- Comprehensive Protection: Travelers offers premier protection with comprehensive coverage options, ensuring peace of mind for policyholders.
- High Multi-Car Discount: Enjoy substantial savings with up to an 18% discount for insuring multiple cars, making Travelers an economical choice for households with multiple vehicles.
- Gap Insurance Discount: Travelers provides up to a 20% discount for Gap insurance, ensuring financial security for your vehicle. Delve into our evaluation of Travelers insurance review & ratings.
Cons
- Varied Customer Experiences: Some customers may encounter inconsistent service levels, emphasizing the importance of personalized experiences.
- May not be the Most Budget-Friendly: Rates with Travelers may vary, and for some profiles, they could be comparatively higher, prompting potential customers to explore multiple quotes.
#8 – American Family: Best for Driving Awareness With Know Your Drive Program
Pros
- Know your Drive Program: American Family encourages safe driving habits through its Know Your Drive Program, rewarding policyholders for responsible driving behavior. Unlock details in our American Family insurance review & ratings.
- Attractive Multi-Car Discount: Enjoy savings with up to an 18% discount for insuring multiple cars, making American Family an economical choice for households with multiple vehicles.
- Competitive Rates: American Family offers competitive rates with up to an 18% discount for Gap insurance, ensuring comprehensive coverage that aligns with your budget.
Cons
- Limited National Presence: American Family’s availability may be limited in certain regions, potentially affecting accessibility for some customers.
- Varied Customer Experiences: Some customers may encounter inconsistent service levels, emphasizing the importance of personalized experiences.
#9 – Erie: Best for Competitive Rates for Your Peace of Mind
Pros
- Competitive Rates: Erie offers competitive rates, providing up to a 25% discount for Gap insurance, ensuring comprehensive coverage that aligns with your budget.
- Attractive Multi-Car Discount: Enjoy savings with up to a 13% discount for insuring multiple cars, making Erie an economical choice for households with multiple vehicles.
- Gap Insurance Discount: Erie insurance review & ratings provides up to a 25% discount for Gap insurance, ensuring financial security for your vehicle.
Cons
- Limited Availability: Erie’s availability may be limited in certain regions, potentially affecting accessibility for some customers.
- May not Offer as Many Perks: While Erie offers competitive rates, it may not provide as many additional perks or benefits as some other competitors.
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#10 – Geico: Best for Big Discounts for Maximum Savings
Pros
- Big Discounts: Geico lives up to its reputation, offering big discounts with up to a 10% discount for Gap insurance and multi-car savings.
- Attractive Multi-Car Discount: Enjoy savings with up to a 10% discount for insuring multiple cars, making Geico an economical choice for households with multiple vehicles.
- Gap Insurance Discount: Geico provides up to a 10% discount for Gap insurance, ensuring financial security for your vehicle. To learn more relevant information, read up “Lesser Known Car Insurance Discounts“.
Cons
- May Lack Personalization: Geico’s focus on big discounts may mean less emphasis on personalized service, potentially affecting those seeking a more tailored insurance experience.
- Varied Customer Experiences: Some customers may encounter inconsistent service levels, emphasizing the importance of personalized experiences.
Coverage Rates for Gap Insurance
The table below presents the average monthly rates for both minimum and full coverage options across several leading insurance companies.
Car Insurance for Gap Insurance: Monthly Rates by Coverage Level & Provider
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Allstate | $80 | $140 |
| American Family | $82 | $145 |
| Erie | $75 | $130 |
| Farmers | $78 | $135 |
| Geico | $68 | $125 |
| Liberty Mutual | $85 | $150 |
| Nationwide | $72 | $125 |
| Progressive | $70 | $120 |
| State Farm | $75 | $130 |
| Travelers | $77 | $140 |
Understanding Gap Insurance and Its Importance for Car Owners
Before we delve into the nitty-gritty details of choosing the best car insurance for Gap coverage, let’s first understand what Gap insurance is and why it is crucial for car owners.
Gap insurance, or Guaranteed Auto Protection, is an extra coverage that helps cover the difference between your car’s current value and what you still owe on it if it’s stolen or totaled. While standard car insurance only pays the market value of your vehicle at the time of loss, Gap insurance covers this shortfall, particularly critical for new cars which depreciate quickly.
This optional add-on to your car insurance ensures you’re not left paying off a loan for a car you no longer have, offering peace of mind and financial security. It’s essential for both new and used cars if the loan balance exceeds the market value, though it requires an additional premium. Read this relevant article to gain more knowledge “What does it mean when a policy is fully paid up?”
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Factors to Consider When Choosing Car Insurance With Gap Coverage
Now that you understand the importance of Gap insurance, let’s discuss the key factors you should consider when selecting the best car insurance company offering Gap coverage.
First and foremost, it’s crucial to verify that the insurance company you are considering offers Gap coverage. While most reputable insurance providers do offer this type of coverage, it is always best to double-check before making your final decision. Additionally, consider the reputation and reliability of the insurance company. Look for customer reviews and ratings to ensure that you are dealing with a trustworthy and reputable insurer.
Another factor to consider is the price of the policy. While affordability is essential, remember that the cheapest option may not always be the best. Analyze the coverage provided by each insurance company and compare insurance quotes online the cost to ensure you are getting the best value for your money.
Furthermore, it is important to consider the specific terms and conditions of the Gap coverage offered by each insurance company. Some policies may have limitations or exclusions that could affect your ability to make a claim in certain situations. Carefully review the policy documents and ask the insurance provider any questions you may have to ensure you fully understand the coverage.
Lastly, take into account the level of customer service provided by the insurance company. In the event of an accident or claim, you want to be confident that the company will handle your case efficiently and with professionalism. Research the company’s customer service reputation and consider reaching out to their customer support to gauge their responsiveness and helpfulness.
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Frequently Asked Questions
What is Gap insurance?
Gap insurance is a type of auto insurance coverage that helps cover the difference between the actual cash value of a vehicle and the amount owed on a car loan or lease in the event of a total loss.
Please review our information regarding “Is Gap Insurance transferable from one vehicle to another?” for more details.
Why is Gap insurance important?
Gap insurance is important because it protects car owners from potential financial loss. In the event of a total loss, such as theft or accident, Gap insurance ensures that the car owner is not left responsible for paying off a loan or lease on a vehicle that is no longer drivable.
Explore your car insurance options by entering your ZIP code below and finding which companies have the lowest rates.
Who should consider getting Gap insurance?
Anyone who is financing or leasing a vehicle should consider getting Gap insurance. It is especially important for those who have a loan or lease with a high balance compared to the actual cash value of the vehicle.
Can Gap insurance be purchased separately?
Yes, Gap insurance can often be purchased separately from an auto insurance policy. It is also sometimes offered as an add-on or endorsement to an existing auto insurance policy.
How does Gap insurance work?
Gap insurance works by covering the difference, or “gap,” between the amount owed on a car loan or lease and the actual cash value of the vehicle determined by the insurance company. If a total loss occurs, the insurance company will pay the difference so the car owner is not left with a financial burden.
Does Gap insurance cover other expenses related to a total loss?
No, Gap insurance typically only covers the difference between the loan or lease balance and the actual cash value of the vehicle.
Gain more information through our relevant comprehensive guide “Actual Cash Value Homeowners Insurance: A Complete Guide“.
How much does Gap insurance cost?
The cost of Gap insurance varies depending on factors such as the insurer, the type of vehicle, and the terms of the loan or lease. It’s usually offered as an additional premium to your auto insurance policy.
Read up on our comprehensive guide on vehicle titled “Best Car Insurance by Vehicle“.
When should I consider purchasing Gap insurance?
It’s best to consider purchasing Gap insurance when you’re financing or leasing a vehicle, especially if you owe more on the loan or lease than the vehicle’s actual cash value.
Is Gap insurance required?
Gap insurance is typically not required by law, but it may be required by a lender or leasing company as part of the financing or leasing agreement.
Can I cancel Gap insurance?
Yes, you can usually cancel Gap insurance, but you may be subject to certain terms and conditions outlined in your policy. It’s important to review your policy and contact your insurer for details on how to cancel Gap coverage if needed.
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Kristine Lee
Licensed Insurance Agent
Kristine Lee is a licensed insurance agent and one of The Zebra’s in-house content strategists. With a background in copywriting, she covers the ins and outs of the home and car insurance industries. She has been a contributor to numerous publications focused on the nuances of insurance, including on The Points Guy.
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.