What Is Gap Insurance and How Does It Work? | Progressive Gap insurance is an optional auto insurance coverage that applies if your car is stolen or deemed a total loss When your loan amount is more than your vehicle is worth, gap insurance coverage pays the difference For example, if you owe $25,000 on your loan and your car is only worth $20,000, your gap coverage covers the $5,000 gap, minus your deductible
Where How to Buy Gap Insurance | Progressive Where to buy gap insurance: dealer vs insurance company How to get gap insurance from the dealer When you buy or lease a car, the dealer will likely ask if you want to purchase gap insurance when you discuss your financing options
Can You Get Gap Insurance on a Used Car? | Progressive Gap insurance is typically recommended for new vehicles, but it's often possible to purchase for used cars as well Gap insurance can pay the difference between what you owe on your vehicle and the vehicle's actual cash value (ACV), so you aren't stuck paying the loan on a totaled or stolen vehicle Without gap insurance, you may be responsible for paying that difference out of pocket
Loan Lease Payoff Coverage | Progressive While both gap insurance and loan lease payoff coverage can help pay off a car loan or lease, they may have different requirements and payout limits At Progressive, only loan lease payoff coverage is offered
Car Insurance Coverages | Progressive Auto insurance coverages explained See a full list of coverages we offer Plus, we’ll explain which car insurance coverages are required or optional
Gap Insurance Through a Dealership | Progressive Gap insurance through a dealership is optional, but your lender may require some form of gap coverage when you finance your car Your car dealership may offer gap insurance when you get a new car, but you may be able to pay less by adding gap coverage, or a similar coverage called loan lease payoff, to your auto policy (instead of purchasing it from the dealership) Or your lender may include
New car insurance - Progressive Learn about insurance for a new car and how coverage works with your current or new car insurance policy
Gap Insurance Claims Process | Progressive A gap insurance claim can take several weeks to process, though it ultimately depends on the circumstances of the accident or theft that led you to file a claim Your vehicle insurance company must first determine the actual cash value of your vehicle Your gap insurance provider will then verify your loan or lease details before your gap coverage pays out