The Best Gap Insurance Companies in Maryland

Some of the best companies for gap insurance in Maryland include Progressive, Travelers, and Safeco. And adding it may only cost a few dollars per month!
Written by Kornelia Drianovski
Edited by Sarah Gray
The state of
doesn’t require
gap insurance
, but it’s often a good investment for policyholders who lease or finance their vehicles. If your vehicle is declared a total loss due to damage or theft, gap insurance will help cover the difference between what you owe and what your car is worth. 
  • Gap insurance is an optional insurance product for Maryland drivers, but it can be beneficial to drivers who lease or finance their vehicles, which is why it’s required by some lenders. 
  • Some of the best companies for gap insurance in Maryland include Progressive, Travelers, and Safeco.  
  • Gap insurance helps ensure you won’t be stuck with a car payment if your vehicle is stolen or totalled while you owe more on it than it’s worth.
  • Purchasing gap coverage through an insurance provider usually adds just a few dollars to your monthly car insurance rates.

The best gap insurance companies in Maryland

If you live in Maryland and want to add gap insurance to your auto policy, you’ll have plenty of
car insurance
providers to choose from. Major companies like
, and
offer gap insurance at competitive rates. 
Real 5-star customer review:
"It never occurred to me to look for more insurance quotes, but I’m so happy I saw Jerry. After using the app, I am saving $2000+ a year through my new Progressive plan. It blew my mind!" —Jarod M.
Overall Jerry rating in Maryland: 4.2
J.D. Power customer satisfaction: 814/1000
AM Best Financial Strength: A+
NAIC complaint index (June 2023): About expected
Flo is available to support you 24/7/365 with Progressive’s industry-leading customer support service. This popular company offers a variety of insurance products, which means you can unlock
insurance discounts
for bundling auto with home and renters insurance. Data shows that drivers with
might find the best rates with Progressive, but it depends on your driver profile.
Policyholders report less-than-average satisfaction with rates, noting very high premiums for teen drivers especially. But Progressive could be the right pick for someone with violations on their
driving record
or who needs usage-based insurance in Maryland.
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Real 5-star customer review:
"Thanks to Jerry, I went from paying almost $500 to a little over $200 with Travelers! I got identical full coverage for two cars. That is amazing!" —Jeannine Q.
Overall Jerry rating in Maryland: 4.9
J.D. Power customer satisfaction: 822/1000
AM Best Financial Strength: A++
NAIC complaint index (June 2023): Fewer than expected
Available in 42 states with 24/7 online claims filing, Travelers is one of the most popular auto insurance companies in Maryland. It excels in customer service rankings, esspecially in the quote and insurance policy purchasing processes. This company offers a ton of discounts and gets great reviews among young drivers in particular.
The cost of insurance with Travelers is not the cheapest in the bunch, but the variety of coverage options (including new car replacement and rental coverage) as well as the comparatively short claims resolution time could make it well worth the money. Plus, this company earned fewer complaints than other companies on this list.
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Safeco: Good for drivers who value customer service
Real 5-star customer review:
Jerry was super helpful with getting the best price possible for me. I ended up going with Safeco. —Lewis F.
Overall Jerry rating in Maryland: 3.75/5
JD Power customer satisfaction: 707/1000
AM Best financial strength: A
NAIC complaint index (August 2023): Lower than average
If you ever need to call up an agent or process a claim, Safeco knows how to do it properly. This company receives fewer than average complaints about customer service. Plus, policyholders enjoy 24/7/365 access to customer support.
With plenty of coverage options, Safeco can tailor a policy to offer optimal protection to your motor vehicle. It’s also one of the more affordable companies in the state of Maryland for most drivers, compared to the national average—especially if you opt to participate in their telematics program RightTrack®.
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Keep in mind: Not every insurer offers gap insurance. If your current provider doesn’t sell it and you don’t feel right about forgoing it you may need to
switch insurance companies
or speak with a license insurance agent to weigh your options. 

How does gap insurance work in Maryland?

“Gap” is short for guaranteed asset protection, and it works in Maryland the same way it functions in other states. 
When you finance or lease a vehicle, you usually owe more than that vehicle is worth for at least a year or two—this is called “negative equity” or being “upside down” in your loan. If your vehicle is declared a total loss or gets stolen while you’re upside down, you could wind up making car payments on a car you no longer own.
This is where gap insurance comes in. Gap insurance will cover the difference between what you owe and your car’s
actual cash value
If you declined gap insurance when you were finalizing paperwork at the dealership, don’t worry! You can likely add gap insurance to your current insurance policy by contacting your auto insurance company and discussing your options. 
To qualify for gap coverage with your insurer, your car will likely need to meet the following criteria:
  • It’s less than three years old
  • It hasn’t sustained previous damage
  • You’re the first or second owner
  • Its actual cash value and current mileage fall within the provider’s specifications

What does gap insurance cover?

Put simply: Gap insurance covers the difference between the amount you owe on a vehicle and that vehicle’s ACV.
A vehicle can lose as much as 5% percent of its original value just by driving off the dealership lot. In fact, data from the
Insurance Information Institute (III)
suggests that most brand-new vehicles depreciate up to 20% in the first year of ownership. 
It takes most car owners over a year to pay 20% of their total loan—which is why gap insurance is an attractive prospect. If your car is totaled or stolen while you still owe more on it than it’s worth, gap insurance can help cover the difference.
Let’s look at a real-life scenario: You agreed to take out a $25,000 car loan to finance a new vehicle and you purchase full coverage for that extra peace of mind. Not long after, you’re driving home from your job in Baltimore in an ice storm and lose control of your car—your injuries aren’t too bad but the car is totaled.
You file a claim with your insurance provider, only to be told that the actual cash value of the new car at the time of the car accident was $22,000. You’ve only made a few payments so far and still owe nearly $24,000 on the loan—not to mention that you also need to replace the totaled car. 
With gap insurance coverage, your remaining auto loan balance will be paid off or simply waived. All you’ll be responsible for is your deductible.

Average monthly cost of gap insurance in Maryland

Adding gap insurance to a
full coverage policy
in Maryland adds an average of just $2 to $30 per month to your insurance costs. To ensure you get the best rate, be sure to
compare car insurance quotes
from at least three to five providers.
However, if you buy gap insurance through a car dealership, auto lender, or credit union you’ll likely pay much more—these institutions typically charge anywhere from $200 to $700 for the additional coverage. 

Is gap insurance worth it in Maryland? 

Gap insurance is a worthwhile investment for anyone who finds themselves in one or more of the following circumstances:
  • The
    down payment
    you made on your financed vehicle was small, totaling less than 20% of the vehicle’s cost. 
  • You’ve decided to lease or finance a luxury car that has a higher-than-average depreciation rate. 
  • You’ll be putting a lot of miles on the vehicle—upwards of 15,000 per year. 
  • Your loan term is between
    72 months
    and 84 months. 
  • You have rolled-over negative equity from your previous car loan 
If any of these scenarios applies to you, adding gap insurance to your existing full coverage car insurance policy is the most affordable way to go.
Gap insurance is NOT a worthwhile investment for you if:
  • You owe less on your vehicle than it’s worth.
  • You own your vehicle outright. 


Maryland’s insurance laws
only require drivers to purchase personal injury and property damage
liability insurance
uninsured motorist
protection. That said, most lenders will also require you to carry
comprehensive coverage
collision coverage
while you still owe money on your loan or lease. 
Since gap insurance only adds a few dollars to your premium, it may make sense to add it too—which is why some lenders and lessors actually require it.
Yes, gap insurance is a good idea, especially if the amount you owe on your
auto loan
or lease exceeds the current value of your car. 
does not offer gap coverage in Maryland. However, many other major carriers, like Progressive, Nationwide, and Travelers offer competitive rates for gap insurance in the Old Line State.
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