Virginia gap insurance: Everything you need to know

How much is gap insurance in Virginia?

In Virginia, gap insurance costs an average of $1,899 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 Virginia

The cheapest company for gap insurance in Virginia is Nationwide, with an average annual cost of $1,084. Not all car insurance companies offer gap coverage, and rates vary significantly by company.

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

Company	Auto insurance rates with gap premium	Gap premium
Nationwide	$1,084	$36
American Family	$1,185	$44
Travelers	$1,195	$32
Mercury Insurance	$1,601	$52
Auto-Owners	$1,678	$49
Progressive	$1,879	$62
Farmers	$4,672	$208

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Average gap insurance cost in Virginia by city

Gap insurance costs the most in Alexandria, with an average rate of $2,014, while Staunton has the lowest rate at $1,723. Where you live in Virginia can impact your insurance costs. Cities with higher crime and theft rates have higher auto insurance rates since the risk of damage or theft is higher.

Here are the average gap insurance rates by city in Virginia

City	Auto insurance rates with gap premium	Gap premium
Staunton	$1,723	$75
Winchester	$1,787	$76
Williamsburg	$1,789	$68
Covington	$1,832	$83
Ashburn	$1,837	$65
Lynchburg	$1,853	$76
Virginia Beach	$1,866	$64
Norfolk	$1,873	$65
Bristol	$1,919	$83
Galax	$1,933	$89

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How much is gap insurance in Virginia 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 $7,364 a year, and at 25 the average annual rate is $2,461.

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

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$7,364	$234
Young adult	$2,461	$89
Adult	$1,899	$69
Senior	$1,738	$57

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How does gap insurance work in Virginia?

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 Virginia

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

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.

Virginia gap insurance: FAQs

Is gap insurance required in Virginia?

Gap insurance isn't required by law in Virginia, but your lender may require you to have the coverage.

Who should buy gap insurance in Virginia?

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

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 Virginia?

Virginia 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.