Virginia gap insurance: Everything you need to know

How much is gap insurance in Virginia?

The average cost of gap insurance in Virginia is $2,836 per year, but your rate will vary by insurer, vehicle value, and other factors. Fast-depreciating cars increase the gap between value and loan balance, making coverage more useful. The cost of the vehicle also matters, since luxury or high-cost cars often lose value faster, raising the potential difference after a total loss.

Cheapest gap insurance companies in Virginia

Virginia Farm Bureau Insurance offers the cheapest gap insurance in Virginia, with an average annual rate of $1,287. Gap coverage is not available from every auto insurance company, and prices differ considerably among insurers. Comparing companies can help you find affordable coverage that fits your needs.

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

Company	Auto insurance rates with gap premium	Gap premium
Virginia Farm Bureau Insurance	$1,287	$46
Travelers	$1,441	$38
Progressive	$2,706	$46
Farmers	$5,912	$282

Read our methodology

Average gap insurance cost in Virginia by city

Harrisonburg has the cheapest average gap insurance rate in Virginia at $2,424 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 Virginia.

City	Auto insurance rates with gap premium	Gap premium
Harrisonburg	$2,424	$91
Penn Laird	$2,428	$90
Staunton	$2,455	$90
Edinburg	$2,482	$92
Dayton	$2,485	$93
Bridgewater	$2,499	$94
Bergton	$2,500	$92
Mount Crawford	$2,502	$94
Timberville	$2,503	$91
Broadway	$2,504	$92
Verona	$2,504	$91

Read our methodology

How much is gap insurance in Virginia by age group?

Gap insurance coverage for an 18-year-old driver costs $11,426 a year and costs $3,631 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 Virginia for different age groups.

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$11,426	$397
Young adult	$3,631	$135
Adult	$2,836	$103
Senior	$2,481	$85

Read our methodology

How does gap insurance work in Virginia?

Gap insurance in Virginia covers the difference between your vehicle's actual cash value and the remaining loan or lease balance after a covered total loss. It is most useful when you owe more than the vehicle is worth, so you don't have to pay the shortfall out of pocket.

New vehicles lose value faster than some drivers pay down their loans. If your financed or leased car is totaled or stolen, your standard auto insurance pays the vehicle's actual cash value rather than the amount remaining on your 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 Virginia

You can buy gap insurance in Virginia 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.

Virginia gap insurance: FAQs

Is gap insurance required in Virginia?

No, Virginia 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 Virginia?

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 Virginia?

Standalone gap insurance in Virginia is coverage you buy separately from your auto policy, usually through a lender, dealership, or third-party provider. You may use it if your insurer doesn't offer gap coverage. Always compare what it covers, payout limits, and terms before you buy.

Does gap insurance cover leased cars in Virginia?

Yes, gap insurance covers a leased vehicle in Virginia 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.