Georgia gap insurance: Everything you need to know

How much is gap insurance in Georgia?

On average, gap insurance in Georgia costs $2,274 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 Georgia

The cheapest gap insurance in Georgia is offered by Auto-Owners, with an average yearly cost of $1,647. Not all car insurance companies provide gap coverage, and rates can vary significantly among carriers.

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

Company	Auto insurance rates with gap premium	Gap premium
Auto-Owners	$1,647	$45
Nationwide	$1,953	$46
Progressive	$2,177	$36
Mercury Insurance	$2,495	$41
Farmers	$3,100	$94

Read our methodology

Average gap insurance cost in Georgia by city

Atlanta has the highest gap insurance rates at an average of $2,620 a year, while Athens offers the lowest at an average of $1,883 per year. Where you live in Georgia affects your insurance rates. Cities with higher crime and theft have higher insurance costs because your vehicle is at a greater risk of being damaged or stolen.

The table below lists the average gap insurance rates by city in Georgia.

City	Auto insurance rates with gap premium	Gap premium
Athens	$1,883	$53
Pooler	$1,972	$48
Guyton	$1,985	$51
Augusta	$2,021	$52
Alpharetta	$2,243	$51
Douglasville	$2,434	$51
Mcdonough	$2,452	$58
Austell	$2,545	$50
Marietta	$2,590	$50
Atlanta	$2,620	$64

Read our methodology

How much is gap insurance in Georgia by age group?

Car insurance rates for younger drivers are more expensive because they are more likely to engage in risky driving and lack the experience needed to avoid accidents. Rates go down as the driver gets older. For example, at 18 years old the average rate is $9,563 a year, and at 25 the average annual rate is $2,736.

The table below shows the average gap insurance rates in Georgia by age.

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$9,563	$164
Young adult	$2,736	$61
Adult	$2,274	$53
Senior	$2,035	$41

Read our methodology

How does gap insurance work in Georgia?

Right after you buy or lease a new car, it depreciates, causing you to owe more than the car is worth. If your car gets totaled, your insurance company pays only the car's actual cash value. This payout may leave you still owing money on the loan. That's where gap insurance helps. If someone totals or steals your car, gap insurance pays the difference between your car's value and the amount 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 Georgia

Many insurance companies, including major carriers, offer gap insurance in Georgia. You can easily add this coverage to your existing auto insurance policy or buy a standalone policy.

Adding gap coverage to your car insurance policy usually costs less. You can also buy gap coverage 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.

Georgia gap insurance: FAQs

Is gap insurance required in Georgia?

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

Who should buy gap insurance in Georgia?

You may need gap insurance if you have a car loan or lease in Georgia. 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 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 Georgia?

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

Does gap insurance cover leased cars in Georgia?

Georgia 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.