Am I wasting my money by paying for loan/lease coverage with Progressive and gap insurance with the bank?
I just bought a new car and I didn't realize that gap insurance was a part of my loan. I am paying for loan/lease coverage with Progressive, too. Should I get rid of one of them?
Apr 29, 2021
Answer provided by
Answered at Apr 29, 2021
Gap InsuranceCar Insurance
“That is a great question! You will really need to look at the differences between the two.
Gap coverage pays the difference between the actual cash value of your car and the balance of your loan in the event of a total loss.
Progressive’s loan/lease coverage does the same thing, but only up to 25% of your car’s depreciated value. Depending on the deprecation of your particular car and the type of loan you have, there may be a small amount left uncovered. “
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
How do I pay off my car loan early?
I don't want to keep paying for my car for another two years. What are some ways to pay off the loan quickly?
Apr 05, 2021
Can I get a car loan with bad credit?
My credit is a joke, but I need a loan to buy a vehicle. Will anyone be willing to lend me money?
Mar 12, 2021