Best Gap Insurance in 2024 (Find the Top 10 Companies Here)

Top Pick for Gap Insurance: Allstate

11,413 reviews

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4.0

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Company Facts

Full Coverage for Gap Insurance

$15/mo

A.M. Best Rating

A+

Complaint Level

Low

Pros & Cons

• Multiple coverage options
• Various discounts
• Additional savings programs

• Lower than average customer service ratings
• Higher than average auto insurance rates

» Allstate Car Insurance Review

11,413 reviews

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Best Gap Insurance for Military: USAA

6,435 reviews

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4.7

Company Facts

Full Coverage for Gap Insurance

$11/mo

A.M. Best Rating

A++

Complaint Level

Low

Pros & Cons

• Offers multiple products including financial services and banking
• High customer satisfaction and financial ratings
• Rates are lower than average
• Coverage is available in all 50 states
• Easy-to-use mobile app

• Coverage isn’t available to everyone
• DUIs drastically increase rates
• SafePilot isn’t available in every state
• Customer complaints are higher than competitors

» USAA Car Insurance Review

6,435 reviews

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Best Gap for Senior Discounts: Geico

19,116 reviews

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4.1

Company Facts

Full Coverage for Gap Insurance

$13/mo

A.M. Best Rating

A++

Complaint Level

Low

Pros & Cons

• Competitive Rates
• 24/7 Customer Service
• Fast Claims Process

• Limited Local Agents
• No Custom Coverage
• Rate Increases

» Geico Car Insurance Review

19,116 reviews

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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.

#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.

#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.

#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.

#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.

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.

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).

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.“

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.

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.