Gap insurance is a crucial form of protection for vehicle owners, especially those who have leased or financed their vehicles. It covers the difference between the actual cash value of the vehicle and the amount owed on the vehicle, which can be thousands of dollars. While most major car insurance companies offer gap insurance, it can be challenging to determine which company is the best fit for your needs.
In this article, we’ll take a closer look at the top companies offering gap insurance, highlighting the unique features and benefits of each provider.
- Travelers Insurance
Travelers Insurance is an excellent option for those looking for affordable gap insurance coverage. The company’s premiums are typically lower than its competitors, making it an affordable choice for budget-conscious drivers. Travelers Insurance also has fewer customer complaints than the average car insurance company, indicating a higher level of customer satisfaction.
Travelers Insurance offers loan/lease gap coverage for approximately 5% of the car’s comprehensive and collision premium. However, only vehicles purchased directly from a new car dealer are eligible.
- The Hartford
The Hartford is an excellent choice for AARP members, as the company offers discounted rates and coverage tailored to senior citizens. The Hartford’s gap insurance must be added to your policy within the first 30 days after purchasing or leasing the vehicle.
- Liberty Mutual
Liberty Mutual offers gap insurance coverage that costs an average of $5-$15 per month, which may be more expensive than some competitors. However, if you already have your auto policy with the company, Liberty Mutual may be a good choice. Since gap insurance is typically only a small portion of your premium, it may be more cost-effective to focus on the price of your entire policy.
As the third-largest car insurance company in the United States, Progressive offers gap insurance coverage that can be easily added to your collision and comprehensive coverage. However, it may be advertised as “loan/lease payoff insurance.” The gap insurance of Progressive is limited to 125% of your vehicle’s actual cash value and, depending on your claim, may or may not cover your deductible. Progressive’s gap insurance minimizes the difference between the actual cash value of your car and the amount owing on that vehicle.
Allstate’s gap insurance, also known as guaranteed asset protection insurance, is available in most states and covers vehicles worth up to $100,000. Covered losses are limited to $50,000, which is a higher amount than many competitors. The gap insurance of Allstate covers deductibles up to $1,000 and can reduce your out-of-pocket expenses in the event of a total loss. You can purchase Allstate’s guaranteed asset protection insurance from dealers nationwide.
- American Family
American Family offers gap insurance coverage to customers in 19 states. To qualify for American Family gap insurance, you must first have an auto insurance policy with the company that includes collision and comprehensive coverage. The gap insurance of American Family can be purchased through independent agents.
Amica is one of the few major providers in the United States to offer gap insurance coverage. The company has a strong reputation for customer service, claims satisfaction, and financial stability. Amica’s gap insurance covers the difference between the value of your vehicle and the amount you owe on that vehicle, similar to other gap insurance policies listed here.
Nationwide is another major insurance provider that offers gap insurance coverage. It is an optional add-on available on certain vehicles and can cover deductibles, theft, total loss, and negative equity. Nationwide’s gap insurance adds an extra layer of protection to your car insurance policy.
In conclusion, gap insurance is a critical form of protection for vehicle owners, especially those who have leased or financed their vehicles. While most major car insurance companies offer gap insurance,