Gap Insurance by Insurance Company
Gap coverage helps when your car is totaled or stolen and you owe more on the loan or lease than the car is worth. Not every car insurer sells it, and the ones that do use different names and limits. Here is how the major carriers handle it, and when a dealer or lender product is the alternative.
Quick answer
- What it pays
- The difference between the insurer's actual cash value payout and the remaining loan or lease balance, within the product's limits.
- Who sells it
- Some car insurers (Allstate, Progressive under another name), plus dealers and lenders. GEICO does not list gap as an add-on.
- Requirement
- Usually collision and comprehensive on the same car.
- Check first
- Your lease contract may already include gap protection.
Gap coverage at each carrier
| Carrier | What it offers | Worth knowing |
|---|---|---|
| Progressive | Loan/lease payoff coverage, which works like gap | Payout is capped at a share of the car's value, and the cap varies by state |
| Allstate | Guaranteed Asset Protection (GAP) as an auto policy option | Ask about vehicle age and ownership rules when you quote |
| GEICO | Gap is not listed among its auto coverages | Look at a dealer, lender or credit union gap product instead |
| State Farm | No gap add-on on the auto policy; its payoff protection was tied to its own vehicle loans | Confirm with your loan documents, not the auto policy |
| USAA | No standard gap add-on; loan-linked total loss protection for eligible USAA auto loans | Eligibility depends on financing through USAA |
| The Hartford, Farmers, Esurance | Availability varies by state and policy | Ask for "gap" or "loan/lease payoff" by name during the quote |
Product names and availability change and vary by state. The carrier's quote and policy documents are what count; we checked the carriers' public pages on October 13, 2026.
How gap coverage works
When a car is totaled or stolen, collision or comprehensive pays its actual cash value, minus your deductible. Early in a loan, especially with a small down payment or a long term, the balance can be higher than that value. Gap coverage pays some or all of the difference, so you are not left paying for a car you no longer have.
That is why insurers sell it only with physical-damage coverage. If you are not sure what your current policy includes, start with how each company defines full coverage.
Gap from a dealer or lender vs. your insurer
- Dealer or lender gap is often a waiver or add-on in the loan. It may be rolled into the financed amount, so you can pay interest on it. You can usually decline it.
- Insurer gap-type coverage is a line on your car insurance policy, priced with each renewal, and may have a payout cap.
- Compare the cap, the cancellation and refund terms, and whether the deductible is covered before choosing. The CFPB explains GAP products and why you can decline them.
When gap is worth checking
- You put little or nothing down.
- Your loan term is long, or you rolled an old loan balance into the new one.
- You lease and the lease does not already include gap protection.
- The car loses value quickly.
Once the balance falls below the car's value, gap coverage stops being useful, and you can drop an insurer add-on at renewal.
Frequently asked questions
These questions cover deductibles, adding gap later, and leases.
Does gap insurance cover my deductible?
Usually not. A gap product typically covers the difference between the car's actual cash value payout and what you still owe; your collision or comprehensive deductible is often subtracted first. Some dealer or lender gap products treat the deductible differently, so read the contract.
Can I add gap coverage later?
Often only for a limited time. Insurers that sell gap-type coverage usually limit it to newer cars and to the original owner or lessee, so ask before you renew. A dealer gap product is normally bought when you sign the loan.
Do leases include gap coverage?
Many leases build gap protection into the contract, but not all. Check your lease agreement or ask the leasing company before you buy a separate product.
Compare car insurance quotes by ZIP Code
If you need collision and comprehensive for a financed or leased car, enter your ZIP Code to compare quotes. The form continues to a partner site, not to any carrier named on this page.
Car insurance quotes
Related guides
- Full coverage by insurance company
- Car insurance deductible calculator
- Car insurance liability limits explained
- Car insurance coverage types on our sister site AutoQuotesByZip
- Compare auto insurance quotes on our sister site QuotesAutoInsurance
Sources
Checked on October 13, 2026: Progressive (loan/lease payoff coverage page), Allstate (gap insurance coverage page), GEICO and USAA auto coverage pages, the Consumer Financial Protection Bureau's GAP explainer. Carrier pages change; the carrier's policy documents and its quote are what count.
How we research carriers · How we make money · Report a correction