Gap Insurance in Ohio
Gap insurance is an optional coverage in Ohio that helps bridge the financial gap between your insurance payout and auto loan balance if your car is totaled or stolen.
Written by Andrea Barrett
Edited by Jessica Barrett
Gap insurance
, also called guaranteed asset protection, is an add-on to your car insurance
policy that bridges the financial gap between your insurance payout—the actual cash value of your car—and the remaining balance of your auto loan if your vehicle is totaled or stolen.- Gap insurance in Ohio is an optional type of car insurance coverage that helps pay off your auto loan if your car is totaled or stolen and your insurance payout is less than your outstanding car loan or lease balance.
- Gap insurance is worthwhile when you owe more on your loan than your car is worth.
- Many car insurance providers offer very affordable gap insurance that you can add to a full-coverage auto insurance policy.
- Gap insurance in Ohio is an optionaltype of car insurance coveragethat helps pay off your auto loan if your car is totaled or stolen and your insurance payout is less than your outstanding car loan or lease balance.
- Gap insurance is worthwhile when you owe more on your loan than your car is worth.
- Many car insurance providers offer very affordable gap insurance that you can add to afull-coverage auto insurance policy.
How gap insurance works in California
If your car is totaled or stolen in Ohio, gap insurance coverage offers financial security and peace of mind to reduce out-of-pocket expenses.
Thanks to depreciation, your car will lose about 20% of its value within the first year of ownership. If you total your vehicle while you owe more than the car is worth, gap insurance will bridge the gap between your insurance payout (the vehicle's
actual cash value
) and the outstanding loan. In Ohio, you can purchase gap insurance if:
- You are the original loan or leaseholder on a new car
- You have a full-coverage (comprehensive coverage and collision coverage) auto insurance policy
- Your vehicle is less than 2-3 model years old
Once you have a gap insurance policy, it can help if you're involved in an accident where your
When do you need gap insurance?
When do you need gap insurance?
You need gap insurance if the coverage limits of your standard auto insurance policy fall short of the vehicle’s total value.
Gap insurance is usually a good idea if you:
- Lease your vehicle
- Finance your car for an extended period (five years or more)
- Make a low down payment on your vehicle (less than 20%)
- Drive a highly customized vehicle or a specific make or model that depreciates quickly
- Rolled over negative equity from a previous vehicle into your current loan
Gap insurance in Ohio usually costs less than $30 per year
As with most insurance policies, the cost of gap insurance in Ohio varies based on personal factors such as your driving record, location, vehicle make and model, and more. But in general, buying gap insurance is cheap—especially compared to what you’d pay if you totaled your vehicle without it.
In general, you can expect to pay anywhere from $2 to $30 monthly. We recommend shopping around for the cheapest car insurance quotes to suit your needs to avoid overpaying.
Note that while buying gap coverage from a car dealership is convenient, it’s usually more expensive because it’s lumped in your auto loan balance—plus, you’ll pay interest on it. Buying gap insurance through your insurance provider is a cheaper option.
Gap insurance companies in Ohio
If you want to purchase Ohio gap insurance, there are two options: through an insurance provider or auto loan lenders, like credit unions.
If you’re thinking about purchasing gap insurance through an insurance provider, the following large companies in Ohio offer it:
- Bristol West: Specializing in high-risk auto insurance, Bristol West offers gap insurance—but premiums tend to be higher than average.
- Liberty Mutual: Gap insurance is available through Liberty Mutual for more than auto insurance companies—and it must be purchased at the same time as your car, and you must be the car's first owner.
- Kemper: You can find gap insurance through Kemper, but only for approximately 5% of the car's physical damage premium.
- State Farm: State Farm’s “Payoff Protector Benefit” is similar to gap insurance and can be accessed only if you take a loan through State Farm Bank.
- USAA: Gap insurance through USAA is called “total loss protection” from USAA but is only available to active military members and military affiliates—and your auto loan must be financed from USAA.
Remember: These aren’t the only auto insurance providers that offer gap insurance, so it’s important to
compare insurance quotes
between companies, your lender, and your dealership to ensure you’re not overpaying.Compare insurance quotes from 50+ insurance companies with Jerry in under 45 seconds
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Do you need gap insurance in Ohio?
Under Ohio state law, you do not have to buy gap insurance—you just need minimum liability insurance coverage. That said, some auto lenders may require you to purchase gap insurance while you have your car loan.
There are some situations where gap insurance can be helpful, even if it isn’t required—like if you made a down payment of less than 20% or bought a vehicle that depreciates quickly.
What’s the difference between gap insurance and new car replacement coverage?
Gap insurance covers the difference between the value of your vehicle at the time of the incident and the outstanding loan amount. New car replacement insurance, on the other hand, pays for the full cost of a new car of the same make and model—minus your deductible.
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