How much is gap insurance in Florida?

The average gap insurance rate in Florida is $2,923 per year, according to a rate analysis by Insurance.com.

The cost of gap insurance depends on factors like the value of your car, the car insurance company you choose, your location, and your age. Hence, it is a good idea to compare quotes from at least three insurance providers before making the final decision.

Cheapest gap insurance companies in Florida

Geico tops the list of the cheapest car insurance companies that provide gap insurance in Florida, at about $1,684 per year, on average. State Farm is second on the list followed by Travelers.

Below is the list of the car insurance companies offering cheap gap insurance in Florida, along with their average annual rates.

CompanyAverage Insurance Rates
Geico$1,684
State Farm$2,189
Travelers$2,614
Nationwide$2,640
Mercury$2,943
Allstate$3,215
Progressive$3,340
National General$3,769
Farmers$4,153

Average gap insurance cost in Florida by city

In Florida, gap insurance rates differ from one city to another, as insurers consider different factors such as an area's frequency of theft, collisions, and vandalism, while calculating the rates. These factors can help insurers accurately predict the potential for claims.

Gap insurance costs are the cheapest in Avon Park, Florida, at $2,058 per year, or $172 per month. On the other hand, Miami has the most expensive gap insurance rates at $3,499 per year, or $292 per month. The table below lists the gap insurance costs for some cities in Florida:

CityAverage Annual Rates
Avon Park$2,058
Fellsmere$2,128
Deland$2,217
Bellair-Meadowbrook Terrace$2,324
Port St. Lucie$2,326
Palm City$2,369
Orlando$2,428
Jacksonville$2,467
Clearwater$2,628
St. Petersburg$2,869
Fort Lauderdale$3,080
Tampa$3,255
Aventura$3,273
Hialeah$3,451
Miami$3,499

Learn more: Can you get a gap insurance refund?

How much does gap insurance cost by age in Florida?

The cost of gap insurance varies by age. For example, in Florida, a 20-year-old driver can expect to pay about $6,284 per year for gap insurance, while a 30-year-old driver would pay closer to $3,134 per year for the same coverage.

Young drivers are considered riskier as they lack driving experience on the road. Their chances of getting into an accident are four times higher than that of more mature drivers. Therefore, their rates are higher to begin with. So, if you're a young driver in Florida, you'll probably pay more for gap insurance than an older driver.

The table below lists gap insurance costs based on age in Florida:

AgeAverage Annual Rates
20$6,284
30$3,134
40$2,923
70$3,053

How does gap insurance work in Florida?

Gap insurance pays the difference between what your car is worth and what you owe on your car loan if your vehicle is stolen or totaled. It doesn't pay to get a new or replacement vehicle. Instead, it ensures that you don't have to continue payments on a car that is a total loss.

To better understand how gap insurance works, let's look at an example.

Assume you bought a car worth $25,000. You get into an accident and your vehicle is totaled. But you still owe $20,000 to your lender. When you file a claim, your insurer will pay the actual cash value of your car, which is, say, $19,000. Even after the insurer pays for the actual cash value of your car, there remains an outstanding loan amount of $1,000.

Now, if you do not have gap insurance coverage, you will be required to pay the remaining $1,000 of the loan. On the other hand, gap insurance will pay for any remaining loan balance.

The table below spells this out in detail:

Worth of the car$25,000
Loan amount left to be paid$20,000
The amount the insurer pays your lender (actual cash value of your car)$19,000
Amount still due on the loan, after insurance claim payout$1,000
With gap coverageThe driver will pay off the loan without any money out of pocket.
Without gap coverageThe driver will have $1,000 out of pocket to pay off the loan.

Learn more: Can I cancel gap insurance coverage?

Sources:

Insurance.com gathered data with the help of Quadrant Information Services from major insurance companies across Florida that offer gap insurance. We included rates for drivers aged 20, 30, 40, and 70. All rates are based on the profile of a driver with a clean record and full coverage policy.

The coverage limit for a full coverage policy is 100/300/100 liability with a $500 comprehensive and collision deductible. The numbers 100/300/100 represent:

  • $100,000 coverage for bodily injury per person
  • $300,000 in bodily injury per accident
  • $100,000 for property damage

Auto insurance FAQs

Is gap insurance required in Florida?

Gap insurance is optional coverage in Florida. But if you have a lease or loan agreement your lender will most likely require you to purchase gap insurance. But you can drop the coverage as soon as your car loan becomes lower than the value of your car.

Who should buy gap insurance in Florida?

Those who have their car on lease or loan should consider purchasing gap insurance in Florida to financially protect themselves.

Apart from that, it is considered a good idea to purchase gap insurance in Florida if:

  • You have paid only 20% of your auto loan
  • You have financed a car for more than 60 months (five years)
  • You lease your vehicle

Also keep in mind depreciation. A new car drops in value about 20% in the first year of ownership and loses more than 10% of its value each year over the next four years, according to information on car-history site Carfax.com. This means that the payout you would get for the value of the car is likely to be much less than what you owe for at least the first several years.

Where to buy gap insurance in Florida?

Here is where you can purchase gap insurance in Florida:

  • From your car insurance company
  • From a company offering stand-alone gap insurance policies
  • From your car dealer
  • From the bank/financial institution which offered you a loan for purchasing your car

As the rates vary from one insurance provider to another, it is advised to compare quotes from multiple sources before making the purchase.

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