Pennsylvania gap insurance: Everything you need to know

How much is gap insurance in Pennsylvania?

In Pennsylvania, gap insurance costs an average of $2,472 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 Pennsylvania

The cheapest company for gap insurance in Pennsylvania is Travelers, with an average annual cost of $1,174. Not all car insurance companies offer gap coverage, and rates vary significantly by company.

Check out the table below to find the cheapest Pennsylvania insurance companies for gap coverage.

Company	Auto insurance rates with gap premium	Gap premium
Travelers	$1,174	$33
Nationwide	$1,372	$54
Erie Insurance	$1,736	$180
Progressive	$2,313	$21
Farmers	$5,764	$271

Read our methodology

Average gap insurance cost in Pennsylvania by city

Philadelphia is the most expensive to buy gap insurance with an average rate of $3,961, and Pittsburgh is the cheapest with an average of $2,182. Where you live in Pennsylvania 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 Pennsylvania.

City	Auto insurance rates with gap premium	Gap premium
Pittsburgh	$2,182	$100
Lancaster	$2,212	$100
Farrell	$2,226	$110
Nanticoke	$2,227	$100
York	$2,230	$101
West Mifflin	$2,250	$100
Easton	$2,321	$104
Derry	$2,412	$118
Brookhaven	$2,699	$115
Philadelphia	$3,961	$168

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How much is gap insurance in Pennsylvania 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 $8,746 per year, while a 25-year-old pays around $3,040 annually.

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

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$8,746	$374
Young adult	$3,040	$140
Adult	$2,472	$112
Senior	$2,207	$96

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How does gap insurance work in Pennsylvania?

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.

You can drop gap coverage once your loan balance is below your car's value. While you can cancel gap insurance anytime, you may not be able to add it later. Most insurers require you to add gap coverage soon after buying a car.

Where to buy gap insurance in Pennsylvania

Many insurance companies, including major providers, offer gap insurance in Pennsylvania. 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

Insurance.com commissioned gap insurance rates from Quadrant Data Services in late 2023 at a variety of ages in all 50 states and Washington, D.C. Base rates use a 40-year-old driver with a 2023 Honda Accord LX. Rates were gathered from 138 insurance companies in 1,468 ZIP codes.

Pennsylvania gap insurance: FAQs

Is gap insurance required in Pennsylvania?

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

Who should buy gap insurance in Pennsylvania?

If you have a car loan or lease in Pennsylvania, 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 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?

Pennsylvania gap insurance covers leased cars where the driver owes more than the vehicle's current market value. Over time, you may remove gap coverage once your vehicle is worth more than what is owed.