How much is gap insurance in Pennsylvania?
On average, gap insurance in Pennsylvania costs $2,417 per 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 Pennsylvania
The cheapest gap insurance in Pennsylvania is offered by Travelers, with an average yearly cost of $1,712. 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 Pennsylvania insurance companies for gap coverage.
| Company | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Travelers | $1,712 | $46 |
| Erie Insurance | $2,312 | $228 |
| Westfield Insurance | $2,559 | $117 |
| Progressive | $3,086 | $30 |
Average gap insurance cost in Pennsylvania by city
Messiah College has the cheapest average gap insurance rate in Pennsylvania at $1,820 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.
Drivers in areas with more theft, accidents or costly claims 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 Pennsylvania.
| City | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Messiah College | $1,820 | $79 |
| Mechanicsburg | $1,827 | $79 |
| Boiling Springs | $1,830 | $80 |
| Lemont | $1,844 | $87 |
| Enola | $1,845 | $81 |
| New Kingstown | $1,846 | $81 |
| Abbottstown | $1,858 | $81 |
| Highspire | $1,858 | $80 |
| Hummelstown | $1,859 | $81 |
| New Cumberland | $1,859 | $81 |
How much is gap insurance in Pennsylvania by age group?
Gap insurance coverage for an 18-year-old driver costs $5,212 a year and costs $2,922 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.
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 Pennsylvania for different age groups.
| Age group | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Teen | $5,212 | $238 |
| Young adult | $2,922 | $135 |
| Adult | $2,417 | $105 |
| Senior | $2,199 | $93 |
How does gap insurance work in Pennsylvania?
Gap insurance in Pennsylvania helps you when your car is totaled or stolen, and you owe more on your loan or lease than the car is worth. Your standard auto insurance pays the actual cash value of the car, but that may not cover your full loan balance. Gap insurance pays the difference.
New cars lose value fast, sometimes faster than you pay down your loan. That can leave you upside down on your loan soon after you buy or lease the car.
"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 Pennsylvania
You can buy gap insurance in Pennsylvania from auto insurers, lenders, dealerships, or standalone providers. You'll usually pay less when you add it to your auto insurance policy. Dealer and lender options often cost more, so compare prices, coverage limits, eligibility rules, and cancellation terms before you choose.
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.
Pennsylvania gap insurance: FAQs
Is gap insurance required in Pennsylvania?
No, Pennsylvania law does not require drivers to carry gap insurance. However, a lender or leasing company may require coverage under the terms of a loan or lease agreement.
Who should buy gap insurance in Pennsylvania?
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 Pennsylvania?
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 Pennsylvania?
Yes, gap insurance covers a leased vehicle in Pennsylvania if it's totaled and you owe more than its actual cash value. Many lease agreements already include gap coverage, so check your contract first; if not, you can add it through your insurer or leasing company. Gap insurance can be removed once the loan balance is lower than the vehicle's value.
Compare Pennsylvania gap insurance rates with other states
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