How much is GAP insurance?

GAP insurance is as low as $20 a month or $240 a year. However, your GAP insurance rates may vary. Some GAP insurance rates can reach up to $1,000 or more per year. But the cost of GAP insurance depends on where you buy GAP insurance, the overall loan amount, and how much the car is worth. Shop around and compare multiple companies to secure the best GAP insurance deal.

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Chris Tepedino is a feature writer that has written extensively about home, life, and car insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and C...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Dec 17, 2021

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The Rundown

  • Your GAP insurance rates can be as low as $20 per month
  • GAP insurance is available at the best national and regional car insurance companies
  • Drivers who make small deposits on car loans should get GAP insurance

Did you know you can add GAP insurance to your car insurance policy? GAP insurance is surprisingly affordable from your auto insurance company.

But how much is GAP insurance from the best insurance companies? How much is GAP insurance at Progressive? Don’t worry – we’re here to help you find what you need.

Read this GAP insurance guide to learn how much GAP insurance costs, where you can find it, and why you need GAP insurance.

Once you learn how much GAP insurance costs, use our free online quote tool to compare multiple insurance companies near you.

How much is GAP insurance?

GAP insurance can be as little as $20 a year from car insurance companies. However, GAP insurance varies like any other auto insurance policy.

If you shop for GAP insurance outside of a car insurance company, you could pay significantly more.

How much is GAP insurance at Progressive?

GAP insurance adds $5 to your car insurance policy per month. However, your GAP insurance rates may cost more if your vehicle is higher than the average fair market value or the manufacturer’s suggested retail price (MSRP).

How much is GAP insurance at GEICO?

GEICO is one of the few companies that doesn’t provide GAP insurance to customers.

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How much is GAP insurance at the dealership?

Dealership GAP insurance is $500 to $1,000 per year. Higher GAP insurance limits demand higher rates a year. Be sure to shop around before you commit to a GAP insurance policy.

How much is GAP insurance at Toyota?

We looked everywhere for Toyota GAP insurance rates. A few Toyota customers on Reddit reported that Toyota GAP insurance costs between $795 and $995 per year.

How much is GAP insurance at Honda?

Honda GAP insurance is private like Toyota’s. We couldn’t locate Honda’s average GAP insurance rates.

What is GAP insurance, and how does it work?

GAP insurance stands for guaranteed asset protection insurance. In the auto insurance industry, GAP insurance provides coverage if your policy limits can’t pay for the vehicle’s value.

For example, let’s say you buy a 2020 Chevrolet Corvette Stingray that has a loan amount of $60,000. Since it’s a two-year-old vehicle, the actual cash value (ACV) becomes $58,900.

If you get into an accident, the auto insurance company covers $58,900. But you’re still on the hook for $1,100 at the lender. GAP insurance pays for the money left on the car loan.

What are the factors that determine GAP insurance rates?

Your GAP insurance rates are based on multiple factors. Here’s a list of the main characteristics that impact GAP insurance.

  • The car’s ACV
  • Where you live
  • The age of the vehicle
  • Vehicle’s claim history
  • The company or dealer where you get GAP insurance

GAP insurance quotes can be cheap under specific conditions. However, affordable GAP insurance can become expensive if some of your factors correlate to higher rates.

Why do I need GAP insurance?

One of the biggest questions when shopping for GAP insurance is, “who needs GAP insurance?’

Check out the list below to see why you need GAP insurance.

  • You’ve made a small deposit on a car loan
  • You’re leasing your vehicle
  • The car you own is a sports car
  • The vehicle has high mileage
  • Financing covers other products

Getting GAP insurance prevents you from spending out-of-pocket for a vehicle that’s dropped in value.

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Where can I buy GAP insurance?

You can buy GAP insurance from an insurance company, a lender, or a dealership.

If you’re looking for GAP insurance at car insurance companies, you should shop at the best companies. So which auto insurance companies provide GAP insurance?

Let’s look at the insurance companies that do.

  • Allstate
  • Nationwide
  • Progressive
  • State Farm
  • AAA
  • Esurance
  • USAA

Regional car insurance companies that provide GAP insurance are good choices, also. Some of them are cheaper.

High-risk drivers should consider companies like State Farm. Although The General, Dairyland, and Direct Auto are excellent for high-risk motorists, they may not have the GAP insurance you need.

How much does GAP insurance add to your car insurance rates?

GAP insurance cost is different for each insurance company. But let’s assume the median GAP insurance rate is $600 a year ($50 per month).

Auto insurance companies add that cost to your policy. Here’s an example of insurance costs combined with GAP insurance.

  • Nationwide — $279/month
  • State Farm — $285/month
  • Progressive — $333/month
  • Allstate — $368/month

We added $50 to the average monthly rate of each company to get the totals you see above.

If you’re eligible for multiple insurance discounts, you can save more money per month.

Can I get a GAP insurance refund if I sell my car?

It depends. If you paid for GAP insurance for the year, you could receive a GAP insurance refund from your insurance company or lender when you sell your car to a dealer or private owner.

However, you’ll only get a partial refund. Auto insurance companies, dealerships, and lenders provide refunds for the months you didn’t use GAP insurance.

Is GAP insurance worth it?

Yes, it is. GAP insurance can save you thousands of dollars if you’re in a total loss accident. GAP insurance can prevent significant out-of-pocket expenses whether you have a new model year vehicle or a used car.

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How Much is GAP Insurance: The Bottom Line

GAP insurance rates vary for each company, dealership, and lender. The lowest we’ve seen for GAP insurance cost is $20 a month. However, there could be a company with cheaper GAP insurance.

Adding GAP insurance to your car insurance policy is more convenient, but dealership GAP insurance has more incentive to give you what the vehicle is worth.

Now that you know how much GAP insurance costs, enter your ZIP code in the free comparison tool below to compare multiple insurance companies in your area.

Frequently Asked Questions: How much is GAP insurance?

There’s always more to learn about GAP insurance. Check out these answers to commonly asked questions below to get more details about GAP insurance.

#1 — When should I get GAP insurance?

It’s best that you get GAP insurance the same day you buy the car. If your vehicle’s worth is less than what you owe, it’s essential to add GAP insurance.

#2 — Can I buy GAP insurance at any time?

You can purchase GAP insurance before the car leases end or before you pay off the vehicle.

#3 — How long does it take for GAP insurance to issue payouts?

It could take between five and 45 days to receive GAP insurance claim checks.

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