Nevada gap insurance: Everything you need to know

How much is gap insurance in Nevada?

In Nevada, gap insurance costs an average of $3,813 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 Nevada

Travelers offers the cheapest gap insurance coverage in Nevada at $2,141 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 Nevada.

Company	Auto insurance rates with gap premium	Gap premium
Travelers	$2,141	$37
American Family	$2,884	$58
Farmers	$3,675	$138
Progressive	$3,788	$41
CSAA Insurance (AAA)	$6,579	$157

Read our methodology

Average gap insurance cost in Nevada by city

Las Vegas has the highest gap insurance rates at an average of $4,199 a year, while Fallon offers the lowest at an average of $2,506 per year. Where you live in Nevada 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 Nevada.

City	Auto insurance rates with gap premium	Gap premium
Fallon	$2,506	$75
Elko	$2,662	$83
Carlin	$2,689	$84
Wells	$2,706	$86
Ely	$2,707	$86
Mesquite	$2,729	$71
Glenbrook	$2,842	$74
Sparks	$2,968	$78
Indian Springs	$3,266	$76
Henderson	$3,409	$76

Read our methodology

How much is gap insurance in Nevada by age group?

Gap insurance rates are higher for younger drivers because they have less experience and are more likely to take risks while driving, increasing the odds of a total loss. As drivers get older, their rates go down. For example, an 18-year-old pays an average of $11,192 per year, while a 25-year-old pays around $4,417 annually.

The table below lists the average gap insurance rates in Nevada based on age.

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$11,192	$223
Young adult	$4,417	$101
Adult	$3,813	$86
Senior	$3,381	$68

Read our methodology

How does gap insurance work in Nevada?

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 Nevada

Many insurance companies, including major carriers, offer gap insurance in Nevada. 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.

Nevada gap insurance: FAQs

Is gap insurance required in Nevada?

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

Who should buy gap insurance in Nevada?

You may need gap insurance in Nevada if you lease or finance a car with a small down payment. Since cars lose value faster than loans are paid off, gap insurance can protect you from owing more than your car is worth.

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 Nevada?

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 Nevada?

Nevada 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.