Question 1

What is gap insurance?

Accepted Answer

Gap insurance covers the difference between what you owe on your car loan or lease and the vehicle’s ACV if it’s totaled or stolen. It’s especially useful early in a loan when the car’s value depreciates faster than the loan balance. Gap insurance coverage helps prevent you from paying out of pocket for a vehicle you no longer have.

Question 2

How much is gap insurance per month?

Accepted Answer

Gap insurance prices depend on several factors, including where you buy it, what type of car you drive, and how large your loan is. However, the average gap insurance price is about $14 per month. To see how much you might pay for gap insurance, enter your ZIP code into our free comparison tool today.

Question 3

Can you buy standalone gap insurance?

Accepted Answer

There are two main ways to buy gap insurance. You can often buy standalone gap insurance through a dealership when you purchase a new car. Alternatively, you can buy gap insurance as an add-on for an existing policy.
Read more: Ultimate Guide on the Best Time to Buy a New Car

Question 4

When does gap insurance not pay?

Accepted Answer

Gap insurance doesn’t pay if your car isn’t declared a total loss or stolen. It won’t cover repairs, maintenance, or normal depreciation. It also won’t cover late loan payments, overdue fees, or negative equity from a previous loan rolled into your current one.

Question 5

Who sells the best gap insurance?

Accepted Answer

Wondering where to buy gap insurance? The best gap insurance companies depend on your specific needs, but Farmers, Liberty Mutual, and Nationwide are typically considered the best providers. These companies offer affordable coverage, high policy limits, and have excellent customer reviews.

Question 6

Do I need gap insurance if I have full coverage?

Accepted Answer

Full coverage usually includes liability, collision, and comprehensive auto insurance, but doesn’t typically include gap coverage. If you have an underwater loan on your vehicle, you’ll most likely need to add gap coverage to your policy.

Question 7

Who has the cheapest gap insurance?

Accepted Answer

USAA’s gap insurance, called Total Loss Protection, is the most affordable option on average, starting at just $14 per month. USAA Total Loss Protection coverage works similarly to gap insurance, but is only available to cars financed through USAA. To learn more about how to qualify, check out our USAA auto insurance review.

Question 8

Is it worth getting gap insurance?

Accepted Answer

It depends on your situation. If you’ve recently purchased or leased a car, buying gap insurance might be worth it. While there are several factors to look at, you should purchase gap insurance during times when you owe more on your vehicle than it’s worth.

Question 9

Are gap insurance and loan/lease payoff coverage the same?

Accepted Answer

Although they are similar, there is one main difference between gap insurance and loan/lease payoff coverage. Gap insurance is only available for newer cars, while you can purchase loan/lease payoff for older vehicles.

Question 10

Does Geico sell gap insurance?

Accepted Answer

No, Geico is not one of the companies that sell gap insurance or a similar alternative. To see what it does offer, read our Geico auto insurance review.

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