Florida gap insurance: Everything you need to know

How much is gap insurance in Florida?

Gap insurance in Florida costs an average of $4,297 per year. Your price will vary by insurer, vehicle value, and other rating factors. Vehicles that lose value quickly create a larger difference between the loan balance and actual cash value, making gap coverage especially useful for those drivers. The cost of your vehicle can also affect gap insurance rates. Expensive or luxury vehicles may depreciate quickly, which can increase the amount of insurance required to cover a total loss.

Cheapest gap insurance companies in Florida

Travelers offers the cheapest gap insurance in Florida, with an average annual rate of $2,496. Gap coverage is not available from every auto insurance company, and prices differ considerably among insurers. Comparing companies can help you find affordable coverage that fits your needs.

Take a look at the table below to see the cheapest Florida insurance companies for gap coverage.

Company	Auto insurance rates with gap premium	Gap premium
Travelers	$2,496	$48
Mercury Insurance	$3,694	$38
Allstate	$5,116	$52
Progressive	$5,882	$105

Read our methodology

Average gap insurance cost in Florida by city

Bonita Springs has the cheapest average gap insurance rate in Florida at $3,269 per year. Rates vary by city because insurers consider local claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. patterns, theft, traffic, repair costs and other location-based risks when pricing auto insurance. Your individual rate will differ from the city average.

If you live in an area with more theft, accidents, or costly claims, you may pay higher overall auto insurance rates. Because gap coverage is often added to an auto policy, these local pricing differences can affect the total cost of coverage.

This table shows the average gap insurance rates by city for Florida.

City	Auto insurance rates with gap premium	Gap premium
Bonita Springs	$3,269	$48
Niceville	$3,285	$47
Valparaiso	$3,288	$46
Eglin AFB	$3,309	$47
Destin	$3,321	$47
De Funiak Springs	$3,328	$47
Santa Rosa Beach	$3,337	$47
Mc Intosh	$3,338	$47
Apalachicola	$3,340	$48
Boca Grande	$3,349	$48
Orange Lake	$3,349	$46

Read our methodology

If you live in an area with more theft, accidents, or expensive claims, you'll likely pay more for auto insurance overall. Since gap insurance is added to your auto policy, those location-based differences also affect your total cost.

How much is gap insurance in Florida by age group?

An 18-year-old driver in Florida pays $16,066 a year for gap insurance, while a 25-year-old pays $4,889 annually for gap insurance. Younger drivers pay more because they have less experience and a higher chance of filing claims. As you gain experience and keep a clean record, your rates will drop.

Age is just one factor in your insurance cost. Your driving record, location, vehicle, insurer, and coverage choices also affect your price. Even drivers of the same age pay very different rates.

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

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$16,066	$197
Young adult	$4,889	$73
Adult	$4,297	$61
Senior	$3,743	$48

Read our methodology

How does gap insurance work in Florida?

Gap insurance in Florida covers the difference between your vehicle's actual cash value and the remaining loan or lease balance after a covered total loss. It is most useful when you owe more than the vehicle is worth, so you don't have to pay the shortfall out of pocket.

New vehicles lose value faster than some drivers pay down their loans. If your financed or leased car is totaled or stolen, your standard auto insurance pays the vehicle's actual cash value rather than the amount remaining on your loan.

"Gap is designed for people who 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 Florida

Gap insurance in Florida can be purchased from many insurers, dealerships, lenders, or standalone providers. Adding it to an existing auto policy is usually the cheapest option, while dealer or lender coverage often costs more. Price, coverage limits, cancellation terms, and eligibility should always be compared before selecting a policy.

Gap coverage is also available from most car dealers and lenders, but their policies are often more expensive, making them a less appealing choice.

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.

Florida gap insurance: FAQs

Is gap insurance required in Florida?

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

Who should buy gap insurance in Florida?

You should consider gap insurance if you finance or lease a vehicle and will owe more than it is worth, which often happens with small down payments, long loan terms or fast-depreciating cars. It is also helpful if you roll taxes, fees, warranties or an existing loan into a new loan. You do not need it if you own the vehicle outright or already owe less than its value.

What is standalone gap insurance in Florida?

Standalone gap insurance in Florida is coverage you buy separately from your auto policy, usually through a lender, dealership, or third-party provider. You may use it if your insurer doesn't offer gap coverage. Always compare what it covers, payout limits, and terms before you buy.

Does gap insurance cover leased cars in Florida?

Yes, gap insurance in Florida covers leased cars when you owe more than the car is worth after a total loss. You can drop gap coverage once your lease balance is lower than the car's value.