Best Gap Insurance Companies: Top 10 Providers Ranked (2026)
Erie, Liberty Mutual, and Nationwide offer the best gap insurance, while Travelers has the cheapest rates at just $3 a month. These insurers are strong picks for new car owners who lease or finance. Gap insurance helps pay the difference between your car’s value and what you owe if it’s totaled or stolen.
Read more
Find the Lowest Car Insurance Rates Today
Quote’s drivers have found rates as low as $42/month in the last few days!
Table of Contents
Table of Contents
Published Insurance Expert
Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific car insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. She also specializes in sustai...
Melanie Musson
Managing Editor
Laura Kuhl holds a Master’s Degree in Professional Writing from the University of North Carolina at Wilmington. Her career began in healthcare and wellness, creating lifestyle content for doctors, dentists, and other healthcare and holistic professionals. She curated news articles and insider interviews with investors and small business owners, leading to conversations with key players in the le...
Laura Kuhl
Licensed Insurance Agent
Jeff is a well-known speaker and expert in insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading fina...
Jeff Root
Updated June 2026
Erie, Liberty Mutual, and Nationwide are the best gap insurance companies. Travelers is the cheapest, with rates as low as $36 annually.
- Erie is the best gap insurance company for its strong customer service
- Nationwide covers cars up to 6 years old with gap insurance
- Gap is often required by lenders for vehicles with a lease or loan
Gap insurance can help cover the difference between your car’s value and your remaining loan or lease balance if your vehicle is totaled.
The best car gap insurance company for you depends on where you live, how much you owe, the policy limits, and how cancellation works.
Top 10 Companies: Best Gap Insurance
| Company | Rank | Claims Satisfaction | Car Age Limit | Best for |
|---|---|---|---|---|
 | #1 | 743 / 1,000 | 2 Years | Car Replacement |
 | #2 | 730 / 1,000 | New Only | First-Time Owners |
 | #3 | 729 / 1,000 | 6 Years | Older Eligibility |
 | #4 | 718 / 1,000 | New Only | Claims Service |
 | #5 | 716 / 1,000 | New Only | AARP Members |
 | #6 | 711 / 1,000 | New Only | Agent Guidance |
 | #7 | 702 / 1,000 | New Only | Bundling Policies |
 | #8 | 693 / 1,000 | New Only | Original Owners |
 | #9 | 691 / 1,000 | New Only | Lowest Cost |
 | #10 | 673 / 1,000 | 3 Years | Payoff Caps |
Shop around before you buy to find the best gap insurance deals. Compare options from your auto insurer, lender, and dealership, since the cheapest gap insurance may come with lower limits or fewer claim benefits.
Average Cost of a Gap Insurance Policy
Car insurance with gap coverage added only increases your premiums by a small amount. Most policies run from $36 to $120 a year, depending on your coverage and loan details.
Dealership gap insurance often costs more. It’s usually sold as a flat fee, and if that fee gets rolled into your auto loan, you may also pay interest on it.
Gap Insurance Rates by Provider
| Insurance Company | Monthly Cost |
|---|---|
 | $10 |
 | $7 |
| $7 |
| $5 |
| $4 |
 | $5 |
 | $4 |
 | $6 |
| $9 |
| $3 |
Your cost depends on where you buy coverage, what your car is worth, how much you owe, and how quickly the vehicle loses value.
Gap insurance may be a smart add-on if you have a long loan term, made a small down payment, or financed a car that depreciates quickly.
Some policies have payout caps, so make sure yours can cover the gap between what your car is worth and what you still owe.Michael Leotta Insurance Operations Specialist
The best gap auto insurance providers usually sell coverage as an add-on to collision and comprehensive insurance.
That keeps it tied to your regular car insurance premium, and you can usually drop it once your loan balance is lower than your car’s value.
Before you choose a policy, compare quotes from your insurer, lender, credit union and dealership. Look beyond price, since a cheaper gap insurance policy may come with lower limits, more exclusions or less help after a totaled car.
Read More: How do insurance companies value totaled cars?
How Your Driving History Affects Gap Insurance Premiums
Your driving record has a much bigger impact on auto insurance rates than on gap insurance itself. But when gap coverage is added to your auto policy, accidents, speeding tickets, DUIs, and coverage lapses can increase the overall premium.
Most insurers require collision and comprehensive coverage before they’ll offer gap insurance. If you can only get liability coverage, gap insurance may not be available through that insurer.
Gap Insurance Monthly Rates by Driving Record
| Company | Clean Record | One Accident | One DUI | One Ticket |
|---|---|---|---|---|
| $10 | $16 | $21 | $12 |
| $7 | $10 | $14 | $9 |
| $7 | $11 | $13 | $8 |
| $5 | $7 | $10 | $6 |
| $4 | $5 | $8 | $5 |
| $5 | $8 | $11 | $7 |
| $4 | $6 | $7 | $5 |
| $6 | $9 | $12 | $8 |
| $9 | $14 | $18 | $11 |
| $3 | $4 | $6 | $4 |
An SR-22 is a state filing that proves you carry required liability insurance after certain violations, suspensions, or coverage lapses. Drivers who need one often pay higher auto insurance rates, which can increase the cost of a full coverage policy with gap insurance.
Before you pick a policy, shop around with several insurers and compare gap insurance reviews to find the cheapest auto insurance for a bad driving record. Not all high-risk insurance companies offer gap insurance, loan or lease payoff coverage, or the same payout limits.
How Credit Can Affect Gap Insurance Costs
Credit also affects the cost of auto insurance that includes gap insurance. In many states, insurers use a credit-based insurance score when calculating auto insurance rates.
Gap insurance itself is usually inexpensive. The bigger factor is the cost of the collision and comprehensive coverage it often requires. If poor credit raises those premiums, the total cost of carrying gap coverage may also increase.
Gap Insurance Monthly Rates by Credit Score
| Company | Excellent (800+) | Good (670-799) | Fair (580-669) | Poor (<580) |
|---|---|---|---|---|
| $10 | $11 | $13 | $16 |
| $7 | $8 | $9 | $11 |
| $7 | $8 | $10 | $12 |
| $5 | $5 | $6 | $8 |
| $4 | $4 | $5 | $6 |
| $5 | $6 | $7 | $8 |
| $4 | $5 | $6 | $7 |
| $6 | $7 | $8 | $10 |
| $9 | $10 | $12 | $14 |
| $3 | $4 | $4 | $5 |
Credit-based pricing isn’t allowed everywhere. In states that limit or prohibit it, insurers typically put more weight on your driving record, car, location, claims history, and coverage selections.
Compare gap insurance from your insurer, lender, and dealership. Dealer coverage is often the most expensive. On the other hand, an insurer add-on is usually cheaper and easier to cancel when you no longer need it.
How Age and Gender Affect Gap Insurance Costs
Age and gender usually don’t directly affect gap insurance rates, but they may influence the underlying auto insurance premium you add the coverage to.
That said, younger drivers often pay more for full coverage. Since gap insurance generally requires collision and comprehensive coverage, the total policy cost may be higher even if the gap add-on is inexpensive.
Gender can affect auto insurance rates in some states, but many states restrict or prohibit gender-based pricing.
On This Topic: Why are auto insurance rates higher for males?
To see the true cost of gap insurance, compare the same policy with and without gap coverage. This shows whether the increase comes from the add-on itself or your underlying auto insurance premium.
How Location Affects Gap Insurance Costs
Location can affect the cost of a policy that includes gap insurance. Gap coverage is usually inexpensive, but the full coverage policy it requires may cost more or less based on your state, ZIP code, and local insurance risks.
Even a change of address impacts your auto insurance rates, especially if you move to an area with different traffic, theft, repair, or claim patterns.
State laws also affect your options. Depending on where you live, rules regarding gap insurance availability, pricing, cancellations, and refunds may differ.
Insurers use local claim data when pricing collision and comprehensive coverage. If your area has higher theft rates, repair costs, accident rates, or claim frequency, you may pay more for coverage.
When considering insurance options, look beyond the monthly add-on cost. Compare the total policy price, payout limits, deductible rules, and cancellation terms to find the best gap insurance policies.
Free Insurance Comparison
Compare Quotes From Top Companies and Save
What is Gap Insurance?
Gap insurance is an optional type of car insurance coverage that helps pay the difference between your car’s actual cash value and what you still owe if it’s totaled or stolen. Find Out More: Replacement Cost vs. Actual Cash Value
It’s usually available for financed or leased vehicles.
A regular car insurance policy pays you for your car’s value at the time of a claim, not the amount you still owe on your loan or lease.
If the payout is less than what you owe, gap insurance for a new car can help cover the rest.
How Gap Insurance Works
Gap insurance applies after a covered total loss, such as a serious crash or theft. Collision or comprehensive coverage pays first based on the car’s actual cash value.
If that payout doesn’t cover your full loan or lease balance, gap insurance can help pay the difference.
How Gap Insurance Pays After a Total Loss
| Scenario | Loan Balance | ACV Payout | Gap Pays |
|---|---|---|---|
| Leased Vehicle | $33K | $30.5K | $2.5K |
| Long-Term Loan | $36K | $29K | $7K |
| Low Down Payment | $31K | $23.5K | $7.5K |
| New Car (Year 1) | $34K | $26K | $8K |
For example, if your car is worth $22,000 but you still owe $25,000, gap insurance may help cover the $3,000 gap.
The amount gap insurance pays can vary widely. A leased car, long-term loan, low down payment, or newer vehicle may leave you with a larger gap if the car is totaled early in the term. Learn More: How Insurance Companies Determine if a Car is Totaled
Think of gap insurance as backup for your loan, not your car. It helps when your insurance payout is too small to cover what you still owe.Daniel S. Young Managing Editor
Gap insurance usually pays your lender or leasing company, not you directly. You may still have to pay your deductible, depending on your policy.
It also doesn’t replace collision or comprehensive coverage. Gap coverage only helps with the loan or lease balance after a covered total loss, and your policy may have limits on how much it will pay.
What Gap Insurance Covers
Gap insurance is meant for one main situation: your car is totaled or stolen, and your insurance payout is less than what you still owe.
It may help cover:
- A covered total loss from an accident, theft, or another covered event
- Part or all of your deductible, depending on the policy
- The difference between your car’s actual cash value and your loan or lease balance
Gap insurance usually doesn’t cover repairs, missed payments, late fees, mechanical issues, warranties, or a new car. Check payout limits and deductible rules before you buy.
When to Consider Getting Gap Insurance
Consider gap insurance if you could owe more on your loan or lease than your car is worth. This is most common early in the term, especially with a new car or a vehicle that loses value quickly.
A total loss can leave a gap when your car’s value drops faster than your loan balance.
Gap insurance may be a good fit if you:
- Bought a car that depreciates quickly
- Chose a long loan term
- Leased your vehicle
- Made a small down payment
- Rolled negative equity into a new loan
Gap insurance can also make sense if you rolled taxes, fees, warranties or other add-ons into your loan. Those costs can raise your balance without raising your car’s value, which may leave you upside down longer.
You may not need auto gap insurance if you made a large down payment, paid in cash, or already owe less than the car is worth. Before buying, compare your loan or lease balance with your car’s estimated value.
For leased vehicles, check your contract first. Some leases require gap coverage, while others already include it.
Where to Purchase Gap Insurance Coverage
There are several ways to buy gap insurance. Just remember that costs, payout limits, and cancellation rules can vary by provider.
It’s usually easiest to buy gap insurance from your own insurer. Still, if you’re financing or leasing, you might want to check with lenders, credit unions, or dealerships too.
Common places to purchase gap insurance include:
- Credit Unions: Credit unions may offer cheaper gap coverage, especially if you finance through them.
- Dealerships: Gap insurance through a dealership is available, but it usually costs more and can raise your loan amount.
- Insurance Companies: Many insurers sell gap insurance as a low-cost add-on to a full coverage policy, or you can find a standalone gap insurance provider.
- Lenders: Banks and auto lenders sometimes offer gap coverage with your loan, but be sure to ask if you’ll pay for it all at once or in installments.
Before you decide, compare the total cost, policy details, and cancellation rules. This way, you’ll know exactly what you’re paying for and how long you’ll need the coverage. Get Started: How to Buy Auto Insurance Online Instantly
Free Insurance Comparison
Compare Quotes From Top Companies and Save
How to Save Money on Gap Insurance
Gap insurance is usually inexpensive, but the cost depends on where you get it and how your car loan is arranged. To save money, compare a few options before buying and cancel your policy when it no longer offers protection. Compare gap insurance quotes online first, since dealer add-ons often cost more.
Compare Gap Insurance Options
Get quotes from your auto insurer and dealership, and check with your lender or credit union to see whether they offer gap insurance. Helpful Info: How to Get Free Online Auto Insurance Quotes
If you buy gap insurance from a dealer, ask whether the cost will be rolled into your auto loan. Financing the policy can increase your monthly payment and cause you to pay interest on the coverage.
Ask About Discounts
Ask your insurer about discounts that can lower your total car insurance cost, including savings for bundling policies, driving a car with safety features, keeping a clean driving record, paying in full, or setting up automatic payments.
Always do a full gap insurance price comparison after discounts, not just the cost of gap insurance. One insurer may charge a little more for gap coverage but still cost less overall.
Gap coverage should be cheap enough that discounts on your main auto policy matter more.
Discounts can also change how much value you get from adding gap insurance. A lower base premium may make the total policy more affordable, even with gap coverage included.
Top Auto Insurance Discounts for Gap Coverage
| Company | Bundling | Multi-Car | Safe Driver | Usage-Based |
|---|---|---|---|---|
| 25% | 10% | 18% | 30% |
| 25% | 23% | 18% | 35% |
| 30% | 25% | 15% | 20% |
| 16% | 10% | 8% | 30% |
| 25% | 10% | 15% | 30% |
| 25% | 25% | 20% | 30% |
| 20% | 15% | 12% | 40% |
| 10% | 12% | 10% | 30% |
| 5% | 10% | 8% | 40% |
| 13% | 8% | 15% | 30% |
Make sure every discount you qualify for is applied before you compare quotes. Missing one discount can make a good gap insurance provider look more expensive than it really is.
Ask your insurer to rerun your quote with all available discounts before you add gap insurance. This gives you a clearer view of the total cost, not just the price of a single add-on.
Check the Policy Details
Check the coverage limits, exclusions, and deductible rules before you buy. That way, you’ll know how much the policy may pay if your car is totaled.
Some policies cover only part of the gap between your loan balance and your car’s value. Others may help cover your deductible, so it’s worth comparing more than just the price.
Buy Coverage Early
Gap insurance is most useful early in your loan or lease when your car might lose value faster than you pay off the loan.
If you wait too long to buy it, you may have fewer choices because auto insurance companies that offer gap insurance only issue gap policies for new or recently bought cars.
Buying early can also help you avoid a coverage gap after you drive off the lot. If your car is totaled before you add coverage, gap insurance won’t apply retroactively.
Learn More: How many days after purchase do you have to get auto insurance?
Cancel Gap Insurance When You Don’t Need It
You typically don’t need gap insurance once your car is worth more than what you owe.
Check your loan balance and vehicle value at least once a year to see whether the coverage still makes sense.
You can reduce your need for gap insurance by making a larger down payment or choosing a shorter loan term. Both help you build equity faster and lower the amount you could owe after a total loss.Dani Best Licensed Insurance Producer
Before dropping gap insurance, use a totaled car value calculator to estimate your car’s value and compare it with your loan or lease balance.
If you owe more than the car is worth, keeping gap insurance may still make sense.
10 Best Gap Insurance Providers Ranked
Erie, Liberty Mutual, and Nationwide top our list of the best gap insurance companies. Gap coverage is the best auto insurance for leased vehicles that are brand new.
Travelers has the cheapest gap insurance, starting as low as $3 per month, and has a strong financial rating of A++ from A.M. Best.
However, rates and availability can vary by state, vehicle, and insurer, so compare gap insurance quotes from multiple providers before you buy.
Ready to shop with top gap insurance providers today? Start shopping around now with our free gap insurance cost comparison tool to get the best deal on insurance companies with gap coverage.
#1 – Erie: Top Overall Pick
Pros
- Replacement Value: Erie’s gap insurance may help replace a newer totaled car instead of paying only its cash value.
- Local Agent Support: Erie policyholders can get help from local agents during quotes and claims.
- Good New-Car Fit: After reviewing Erie, we found the company works great for drivers financing a newer vehicle.
Cons
- Limited Availability: Erie sells policies only in select states and Washington, D.C.
- Agent-Based Quotes: You’ll usually need an agent to check pricing and eligibility.
#2 – Liberty Mutual: Best for First-Time Owners
Pros
- Great for New Owners: Liberty Mutual offers coverage options to protect financed vehicles during the early ownership period.
- Easy Digital Management: Policyholders can handle quotes, payments, claims, and policy updates online.
- Flexible Coverage Choices: Policies can be customized to fit different budgets and loan terms.
Cons
- Service Can Vary: Customer experiences may vary by location, agent, and claim type.
- Discounts Aren’t Guaranteed: Savings vary based on driving history, location, and coverage selections.
#3 – Nationwide: Best for Older Cars
Pros
- Older Vehicle Eligibility: Nationwide gap insurance covers vehicles up to 6 years old, which is longer than many insurers allow.
- Broad Coverage Options: Drivers can pair automobile gap insurance with add-ons like accident forgiveness and a vanishing deductible.
- Online Tools: Nationwide has a mobile app, online account access, and tools for managing your policy.
Cons
- Policy Required: You’ll usually need a Nationwide auto insurance policy to get gap coverage.
- Rates Can Vary: Your cost can depend on where you live, your vehicle, and your driver profile.
#4 – Amica: Best for Claims Support
Pros
- Outstanding Claims Service: Our review of Amica found that it’s known for responsive support and high customer satisfaction.
- Personalized Assistance: Customers often praise Amica’s clear communication and helpful guidance.
- Bundling Discounts: Combining gap insurance with home or renters insurance can lower your insurance costs.
Cons
- Limited Gap Coverage Details: You may need to contact Amica directly to confirm policy information.
- Fewer Local Offices: Offers less in-person access than many top gap insurance companies.
#5 – The Hartford: Best for AARP Members
Pros
- Member-Focused Perks: AARP members can access discounts, guaranteed renewability, and a range of added policy features.
- Good Claims Support: The Hartford representatives provide support throughout the claims process from start to finish. Find Out More: The Hartford Auto Insurance Review
- Multi-Policy Discounts: Bundling auto and home insurance may lead to lower overall insurance expenses.
Cons
- Member Only Benefits: Some of the most valuable features are available primarily to AARP members.
- State-Specific Availability: Coverage options and endorsements may vary by state.
#6 – Auto-Owners: Best for Agent Assistance
Pros
- One-on-One Guidance: Independent agents with Auto-Owners can help drivers understand gap insurance and loan-related protection needs.
- Custom Coverage: Add-ons include roadside assistance, rental reimbursement, and accident forgiveness.
- Few Customer Complaints: Auto-Owners consistently receives fewer complaints than expected for its size.
Cons
- No Instant Online Quotes: Coverage and pricing generally require speaking with an agent.
- Regional Availability: Auto-Owners isn’t available in every state.
#7 – American Family: Best for Bundling Policies
Pros
- Bundling Savings: Bundling your auto and home policies with American Family will lower your insurance rates. Don’t Miss It: American Family Auto Insurance Review
- Useful Add-Ons: Gap insurance and other endorsements may help pay for expenses that fall outside a standard auto policy.
- Local Agents: American Family agents can walk you through coverage choices in clear, straightforward terms.
Cons
- Limited Availability: American Family auto insurance is sold only in certain states.
- Eligibility Varies: Gap coverage depends on factors such as your vehicle, financing terms, and policy requirements.
#8 – Allstate: Best for Original Borrowers
Pros
- Built for Original Financing: Allstate’s gap insurance is designed for drivers who financed or leased their vehicle from the start.
- Robust Mobile Tools: Manage policies, make payments, and file claims through Allstate’s app. See More: Allstate Auto Insurance Review
- Extensive Agent Network: Local agents are widely available to answer questions and explain coverage.
Cons
- Eligibility Restrictions: Changes to your loan terms or vehicle ownership may affect eligibility for gap insurance.
- Higher Price Point: Rates can run higher than those from other insurance companies that offer gap coverage.
#9 – Travelers: Best for Low-Cost Gap Insurance
Pros
- Cheapest Gap Insurance: Travelers has the most affordable gap insurance coverage, starting at just $3 per month.
- Financial Strength: Travelers holds an A++ rating from A.M. Best, reflecting strong backing for large insurance claims.
- Policy Options: Drivers can combine gap coverage with several useful auto insurance add-ons.
Cons
- Full Coverage Required: Travelers gap insurance requires you to get collision and comprehensive coverage on your vehicle.
- State-by-State Differences: Gap coverage options and requirements can vary depending on where you live.
#10 – Progressive: Best for Payoff Caps
Pros
- Payoff Cap Protection: Progressive gap insurance is called loan payoff coverage, which helps with balances within the company’s stated limits.
- Online Quote Tools: Shoppers can review auto insurance options online without calling an agent.
- Available Nationwide: Progressive serves drivers in all 50 states. Learn more in our guide: Progressive Auto Insurance Review
Cons
- Coverage Cap: Drivers with larger loan balances could still owe money after a total loss if the amount exceeds Progressive’s maximum payout.
- Not True Gap Insurance: Loan/lease payoff coverage differs from traditional gap insurance and may offer less protection.
Frequently Asked Questions
Which company has the best gap insurance?
Erie Insurance is one of the best gap insurance carriers because it offers strong customer satisfaction, affordable rates, and broad availability. The best option for you depends on your vehicle, loan balance, and location.
What insurance companies offer gap coverage?
Many top car insurance providers offer gap insurance, such as Erie, Travelers, Liberty Mutual, and American Family.
Where can I buy gap insurance?
You can buy gap insurance from car insurance companies with gap coverage, car dealerships, lenders, or leasing companies. An insurer is generally the best place to buy gap insurance for convenience and affordability.
Can you get gap insurance on a used car?
Yes, there are many insurance companies that offer gap insurance for used cars if you have a loan and owe more than the vehicle is worth. Eligibility requirements vary by company and vehicle age.
Is gap insurance worth it?
Gap insurance is worth it for many new car owners, especially if you owe more than your car is worth. It’s usually low-cost and can protect you from paying out of pocket after a total loss.
Shop around with multiple top insurers and buy gap insurance online in 2 minutes or less using our free quote tool.
When should you not buy gap insurance?
You may not need gap insurance if your car is worth more than your remaining loan balance or if you own the vehicle outright. It may also be unnecessary if you made a large down payment and have significant equity.
How much is gap insurance per month?
Gap insurance typically costs between $3 and $10 per month when added to an auto insurance policy. Rates vary based on your insurer, vehicle, and loan amount. See More: Average Cost of Auto Insurance
Our quote comparison tool helps you narrow your options and spot cost differences from top gap car insurance providers before you buy a policy.
What exactly does gap insurance cover?
Gap insurance helps cover the gap between what your vehicle was worth when it was totaled and what is left to pay on your lease or loan.
What are the downsides of gap insurance?
Gap insurance may have limits, exclusions, or a maximum payout, so it may not cover every cost after your car is totaled. Always read the policy details before buying any type of auto insurance coverage.
How much will gap insurance pay?
Gap insurance will pay out the actual cash value of your totaled vehicle. Learn More: Replacement Cost vs. Actual Cash Value
When does gap insurance not pay?
Why would a gap insurance claim be denied?
Will gap insurance cover mechanical issues?
How long should you keep gap insurance?
Are there alternatives to gap insurance?
Related Articles
-
Jun 2026
The Average Cost of Auto Insurance (2026 Rates to Expect)
-
Dec 2024
Is auto insurance per car or per person??
-
Apr 2025
Best Auto Insurance for Supercars in 2026 (Your Guide to the Top 10 Companies)
-
Jun 2026
Cheapest Auto Insurance Companies in 2026
-
Mar 2025
Best Auto Insurance for Seniors in Colorado (See Top 10 Companies for 2026)
-
Dec 2024
Best Auto Insurance After a DUI in Arizona (Top 10 Companies for 2026)
Get a FREE Quote in Minutes
Insurance rates change constantly — we help you stay ahead by making it easy to compare top options and save.
