Where to buy gap insurance
Gap insurance providers include many major car insurance companies. Allstate, Nationwide, Esurance and USAA all sell gap insurance. Progressive has a similar policy, called loan/lease payoff coverage, which is slightly different from gap insurance because a maximum payout of 25 percent of your vehicle's actual cash value is stipulated in your policy.
In some cases when you are insuring a new car, you can get gap coverage as an add-on endorsement to your standard policy; check with your insurer to find out if it is offered. You must also have collision and comprehensive coverage on the policy.
Can I buy gap insurance online?
CarInsurance.com offers a number of different gap policy options. In each state where we are an online insurance agency and offer Safeco, Travelers, Progressive, and The Hartford we offer loan/lease gap coverage along with your auto insurance policy.These policies are limited to the terms of your policy and must be purchased with comprehensive and collision. Depending on the insurer, sometimes gap coverage will cover your claim deductible. Typically, however, gap insurance only pays the difference between what is owed and the actual cash value of the car.
Below are standard terms for a gap policy, but remember the terms of loan/lease gap coverage will vary depending upon the guidelines of the issuing company:
- Gap insurance is available if there is a leaseholder or lien holder on the vehicle. A lessor or lien holder can only be a financial institution; it cannot be a private individual.
- Provides coverage when a vehicle sustains a total loss.
- Covers the difference between the actual cash value (ACV) of the vehicle at the time of loss (less deductible) and the amount owed on the loan or lease.
- Can be purchased on new and used vehicles at any time during the policy term.
- Collision and comprehensive coverages required.
- Payment will not include unpaid finance, excess mileage or any other charges or expenses associated with the loan or lease.