Florida gap insurance: Everything you need to know

How much is gap insurance in Florida?

In Florida, gap insurance costs an average of $3,724 per year, but prices vary by company. Your car's value also affects the cost of gap insurance. Expensive or luxury cars depreciate faster than standard vehicles, so gap coverage may have to pay more, leading to higher rates.

Cheapest gap insurance companies in Florida

Travelers offers the cheapest gap insurance coverage in Florida at $2,782 annually. Not all car insurance companies provide gap coverage, and rates differ widely by company.

See the table below to find the cheapest insurance companies for gap coverage in Florida.

Company	Auto insurance rates with gap premium	Gap premium
Travelers	$2,782	$48
Progressive	$3,398	$34
Nationwide	$3,402	$138
Mercury Insurance	$4,206	$32
Allstate	$4,832	$49

Read our methodology

Average gap insurance cost in Florida by city

Hialeah is the most expensive to buy gap insurance with an average rate of $4,315, and Avon Park is the cheapest with an average of $2,755. Where you live in Florida can affect your insurance rates. Auto insurance rates are higher in cities with more crime and theft since your vehicle is more likely to be damaged or stolen.

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

City	Auto insurance rates with gap premium	Gap premium
Avon Park	$2,755	$50
Fellsmere	$2,774	$44
Deland	$2,871	$48
Bellair-Meadowbrook Terrace	$3,095	$52
Port St. Lucie	$3,098	$46
Palm City	$3,163	$46
Orlando	$3,218	$50
Jacksonville	$3,219	$54
Clearwater	$3,413	$47
St. Petersburg	$3,722	$52

Read our methodology

How much is gap insurance in Florida by age group?

Gap insurance coverage for an 18-year-old driver costs $13,041 a year and costs $4,137 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 Florida for different age groups.

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$13,041	$149
Young adult	$4,137	$68
Adult	$3,724	$60
Senior	$3,407	$53

Read our methodology

How does gap insurance work in Florida?

When you buy or lease a new car, depreciationDepreciation is the decrease in your car's value over time due to wear and tear, age and mileage. Depreciation is used to determine the actual cash value of a vehicle in the event of a total loss. can quickly cause you to owe more than the car is worth. If your car is totaled, the insurance company will only pay out the car's actual cash value, which may leave you owing on the loan. That's where gap insurance comes in. If your vehicle is totaled or stolen, gap insurance covers the difference between your car's value and the loan payoff.

"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, imagine you have a $40,000 car loan, but your vehicle's actual cash value is only $35,000. If someone steals your car, your insurance company reimburses 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 pays the remaining $5,000 you still owe on the loan. Without gap insurance, you must cover this difference out of pocket.

Once your loan balance is lower than your car's value, you can drop gap coverage. You can cancel gap insurance anytime, but you may not be able to add it whenever you want. Most insurers require you to add the coverage soon after you buy a car.

Many lenders also require gap insurance when you take out a loan. You can buy gap coverage from your lender or car dealership, but adding it to your existing auto policy usually costs less.

Where to buy gap insurance in Florida

Many insurance companies, including major providers, offer gap insurance in Florida. You can add this coverage to your existing car insurance policy or buy a standalone policy.

The best way to get gap coverage is to add it to your auto insurance policy. Car dealers and lenders also offer gap insurance, but their policies are mostly expensive, making them less budget-friendly.

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?

Gap insurance isn't required by Florida law. However, your lender may require the coverage.

Who should buy gap insurance in Florida?

If you have a car loan or lease in Florida, you might need gap insurance. If you made a small down payment, you could quickly owe more than your car is worth since vehicles lose value faster than you can pay the loan. In this case, gap insurance can be a smart choice.

You don't need gap insurance if you own your car or made a large down payment to ensure that you owe less than the car's value at the start of your loan.

What is standalone gap insurance in Florida?

Standalone gap insurance is a policy of its own, not connected with your car insurance. Gap insurance is available from your lender or a private company as a separate policy.

Does gap insurance cover leased cars in Florida?

Florida gap insurance covers leased cars when the driver owes more than the car's current market value. You can remove gap coverage once your vehicle is worth more than what you still owe.