Do any car insurance companies offer gap coverage instead of loan/lease coverage?
I declined gap insurance from my lender and dealership. I'm considering getting it through an insurance carrier, but I've read that gap insurance and loan/lease coverage are different.
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Answered on Apr 21, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
“When insurance carriers offer loan/lease coverage, they are typically agreeing to pay 25% of the actual cash value of your vehicle.
Gap insurance normally covers the difference should you owe more on your loan than what your vehicle is worth.
There are insurance companies that offer loan/lease coverage and gap coverage. Based on the age of your vehicle and the length of time left on your loan, one could be more beneficial to you than the other.
Also, be aware that some carriers may refer to their gap insurance as loan/lease coverage. Before agreeing to add something to your policy, confirm the terms and conditions.
Progressive and Travelers are two companies that offer some form of gap insurance or loan/lease coverage.
Shop around and compare prices to get the most affordable insurance. Gathering car insurance quotes online is a great start. “
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