Virginia gap insurance: Everything you need to know

How much is gap insurance in Virginia?

On average, gap insurance in Virginia costs $1,899 a 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 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

Read our methodology

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

Read our methodology

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

Read our methodology

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.

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 Virginia

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

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?

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 in Virginia 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 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 policy of its own, not connected with your car insurance. Gap insurance is available from your lender or a private company as a separate 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.