Connecticut gap insurance: Everything you need to know

Gap insurance covers the difference between your car’s value and the amount you still owe if it’s totaled or stolen. It’s not required by law in Connecticut, but many lenders and leasing companies require it. In Connecticut, gap insurance costs an average of $2,277 per year, with Progressive offering the lowest rates.

Last updated: Dec 11, 2025

How much is gap insurance in Connecticut?

On average, gap insurance in Connecticut costs $2,277 a year, but rates vary by company. The cost of your vehicle also affects gap rates. Expensive or luxurious cars tend to depreciate faster than standard vehicles, meaning gap coverage would have to pay more, which increases coverage rates.

Cheapest gap insurance companies in Connecticut

The cheapest company for gap insurance in Connecticut is Progressive, with an average annual cost of $1,653. Not all car insurance companies offer gap coverage, and rates vary significantly by company.

Check out the table below to find the cheapest Connecticut insurance companies for gap coverage.

Company	Auto insurance rates with gap premium	Gap premium
Progressive	$1,653	$24
Nationwide	$1,975	$49
Kemper	$1,994	$71
The Hanover	$2,573	$105
Amica	$3,189	$127

Read our methodology

Average gap insurance cost in Connecticut by city

Gap insurance costs the most in Bridgeport, with an average rate of $2,909, while Jewett City has the lowest rate at $1,880. Where you live in Connecticut can impact your insurance costs. Cities with higher crime and theft rates have higher auto insurance rates since the risk of damage or theft is higher.

Here are the average gap insurance rates by city in Connecticut

City	Auto insurance rates with gap premium	Gap premium
Jewett City	$1,880	$64
Bristol	$1,908	$60
New London	$1,991	$69
Middletown	$2,100	$70
Norwalk	$2,180	$76
Derby	$2,299	$74
Stamford	$2,305	$78
Milford	$2,342	$70
Hartford	$2,854	$94
Bridgeport	$2,909	$99

Read our methodology

How much is gap insurance in Connecticut by age group?

Gap insurance coverage for an 18-year-old driver costs $7,319 a year and costs $2,666 annually for a 25-year-old driver. Car insurance costs more for younger drivers because they are more likely to take risks and have less experience avoiding accidents. However, rates decrease as drivers get older.

Here are the gap insurance rates in Connecticut for different age groups.

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$7,319	$215
Young adult	$2,666	$87
Adult	$2,277	$75
Senior	$2,172	$68

Read our methodology

How does gap insurance work in Connecticut?

When you buy or lease a new car, it depreciates quickly resulting in you owing more than it's worth. If your car is totaled, your insurance company will only pay its actual cash value, which might not cover your full loan balance. That's where gap insurance helps. If your car is totaled or stolen, gap insurance covers the difference between your car's value and what you still owe on the loan.

"Gap is designed for people that take long-term loans and/or roll taxes, service plans, or warranties into their loan," said Zack Pope, agency manager at David Pope Insurance in Missouri. "Most gap coverages only go a certain percent over market value to pay off a loan for a totaled vehicle (typically 25%). It costs significantly less money to get gap through your insurance than to purchase it from the dealership."

For example, let's say you have a $40,000 car loan, but your vehicle's actual cash value is only $35,000. If the car is stolen, your insurance company will reimburse you $35,000, minus your deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim.. Gap insurance would cover the remaining $5,000 that you still owe on your loan. Without gap insurance, you'd be responsible for paying this difference out of pocket.

Once your loan is less than the value of your car, you can drop gap coverage. While you can always cancel gap insurance, you may be unable to add it anytime. Most insurers want you to add the coverage quickly after buying a car.

Additionally, many lenders require gap insurance when getting your loan. Although you can get gap coverage through your lender or car dealership, adding it to your current auto policy is usually cheaper.

Where to buy gap insurance in Connecticut

Many insurance companies, including major carriers, offer gap insurance in Connecticut. It's relatively easy to add coverage to your current auto insurance policy.

Adding gap coverage to your auto insurance policy is usually the most cost-effective option. While you can purchase gap coverage from most car dealers and lenders, those policies tend to be more expensive, making it a less attractive option.

Methodology

We gathered car insurance rates with and without gap insurance through our data partner, Quadrant Information Services.

Averages are annual and based on our full coverage data set. This data set is based on:

Bodily injury liability of $100,000 per person and $300,000 per incident
Property damage liability of $100,000 per incident
Comprehensive and collision deductibles of $500
40-year-old driver
Honda Accord LX
Good credit
A clean driving record
12-mile commute, 10,000 annual mileage

To show the cost of gap insurance, we have compared rates with gap insurance added to the averages without gap insurance, and the difference is shown as the annual cost of gap insurance.

Rates are based on an analysis of over 5 million data points in all 50 states and Washington, D.C. from 138 companies.

Connecticut gap insurance: FAQs

Is gap insurance required in Connecticut?

Connecticut law doesn't require gap insurance, but your lender may require it.

Who should buy gap insurance in Connecticut?

You may need gap insurance if you have a car loan or lease in Connecticut. Drivers who make a small down payment typically owe more than the vehicle is worth since cars depreciate faster than the loan is paid down, making gap insurance a good idea.

You don't need gap insurance if you own your vehicle or make a large down payment so that you owe less than the car's value from the start of your loan.

What is standalone gap insurance in Connecticut?

Standalone gap insurance is a separate policy, not part of your car insurance. You can buy it from your lender or a private company.

Does gap insurance cover leased cars in Connecticut?

Connecticut gap insurance covers leased cars where the driver owes more than the vehicle's current market value. Over time, you may remove gap coverage once your vehicle is worth more than what is owed.