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?

Answer
“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. “
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Shannon Martin
Answered on Apr 29, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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