How much does gap insurance cost?
Take a look at the table below. As you can see, adding gap coverage isn't a huge expense. Depending on where you live and what company you choose, it could cost less than $100 more per year.
The rates below are based on a full coverage policy with 100/300/100 in liability coverage and $500 deductibles. To purchase gap insurance, you must have full coverage on your policy.
| Company | Average annual premium without gap coverage | Gap insurance premium add-on |
|---|---|---|
| Vermont Mutual | $1,353 | $1,424 |
| Mapfre Insurance | $1,424 | $1,493 |
| Frankenmuth Insurance | $1,402 | $1,503 |
| Auto Club Group - ACG (AAA) | $1,423 | $1,505 |
| Erie Insurance | $1,390 | $1,628 |
| Safety Insurance | $1,772 | $1,797 |
| The Hanover | $1,760 | $1,831 |
| State Farm | $1,822 | $1,869 |
| Auto-Owners | $1,850 | $1,912 |
| Travelers | $1,977 | $2,026 |
| American Family | $1,998 | $2,056 |
| Nationwide | $2,115 | $2,183 |
| Shelter Insurance | $2,366 | $2,480 |
| Auto Club Enterprises (AAA) | $2,394 | $2,483 |
| Iowa Farm Bureau | $2,517 | $2,543 |
| Kemper | $2,531 | $2,622 |
| Progressive | $2,640 | $2,692 |
| The Hartford | $2,770 | $2,891 |
| Mercury Insurance | $2,962 | $3,004 |
| Amica | $3,063 | $3,189 |
| Allstate | $3,947 | $4,066 |
| Farmers | $4,021 | $4,178 |
| Sentry Insurance | $5,956 | $5,980 |
| CSAA Insurance (AAA) | $6,134 | $6,302 |
| USAA | $996 | $1,047 |
Average cost of gap insurance by company and state
Take a look at the table below. We’ve compiled a list of national and regional carriers by state so you can see what your car insurance might cost with and without gap coverage.
The most expensive gap insurance is through Farmers in Montana and Colorado, which costs $444 and $393, respectively, to add to your annual insurance policy premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods..
The cheapest is through Progressive in Ohio and Pennsylvania, at a $19 and $21 additional annual cost, respectively.
Find your state below to compare gap insurance rates by company.
| State | Company | Average annual premium without gap coverage | Gap insurance premium add-on |
|---|---|---|---|
| Alabama | Travelers | $1,421 | $1,460 |
| Alabama | Auto-Owners | $2,186 | $2,258 |
| Alabama | Progressive | $2,571 | $2,653 |
| Alabama | Farmers | $2,933 | $3,062 |
| Arizona | Travelers | $1,554 | $1,593 |
| Arizona | Auto-Owners | $1,705 | $1,757 |
| Arizona | Nationwide | $1,982 | $2,044 |
| Arizona | Progressive | $2,118 | $2,152 |
| Arizona | The Hartford | $2,422 | $2,512 |
| Arizona | CSAA Insurance (AAA) | $5,696 | $5,881 |
| Arizona | Farmers | $6,623 | $6,888 |
| Arkansas | Travelers | $1,422 | $1,462 |
| Arkansas | Auto-Owners | $1,895 | $1,965 |
| Arkansas | Auto Club Enterprises (AAA) | $2,101 | $2,186 |
| Arkansas | Progressive | $2,374 | $2,464 |
| Arkansas | Farmers | $2,918 | $3,062 |
| California | Progressive | $2,199 | $2,229 |
| California | Mercury Insurance | $2,302 | $2,347 |
| California | Allstate | $2,789 | $2,893 |
| California | Travelers | $2,822 | $2,897 |
| California | The Hartford | $2,827 | $2,953 |
| California | Farmers | $2,881 | $3,023 |
| California | Nationwide | $3,058 | $3,151 |
| Colorado | Nationwide | $2,274 | $2,340 |
| Colorado | Auto-Owners | $2,468 | $2,548 |
| Colorado | Progressive | $3,463 | $3,560 |
| Colorado | Kemper | $3,546 | $3,699 |
| Colorado | Farmers | $7,673 | $8,067 |
| Connecticut | Progressive | $1,629 | $1,653 |
| Connecticut | Nationwide | $1,926 | $1,975 |
| Connecticut | Kemper | $1,923 | $1,994 |
| Connecticut | The Hanover | $2,467 | $2,573 |
| Connecticut | Amica | $3,063 | $3,189 |
| Delaware | Progressive | $2,011 | $2,057 |
| Delaware | American Family | $2,476 | $2,556 |
| Delaware | Farmers | $2,679 | $2,806 |
| Delaware | Sentry Insurance | $5,956 | $5,980 |
| Florida | Travelers | $2,733 | $2,782 |
| Florida | Progressive | $3,364 | $3,398 |
| Florida | Nationwide | $3,264 | $3,402 |
| Florida | Mercury Insurance | $4,174 | $4,206 |
| Florida | Allstate | $4,783 | $4,832 |
| Florida | Farmers | $5,260 | $5,338 |
| Georgia | Auto-Owners | $1,602 | $1,647 |
| Georgia | Nationwide | $1,906 | $1,953 |
| Georgia | Progressive | $2,141 | $2,177 |
| Georgia | Mercury Insurance | $2,454 | $2,495 |
| Georgia | Farmers | $3,005 | $3,100 |
| Idaho | Auto-Owners | $951 | $981 |
| Idaho | Travelers | $1,261 | $1,299 |
| Idaho | Farmers | $2,690 | $2,827 |
| Illinois | Travelers | $1,209 | $1,240 |
| Illinois | Auto-Owners | $1,279 | $1,321 |
| Illinois | Progressive | $1,835 | $1,877 |
| Illinois | Auto Club Enterprises (AAA) | $1,989 | $2,080 |
| Illinois | Farmers | $3,985 | $4,185 |
| Indiana | Travelers | $1,344 | $1,386 |
| Indiana | Progressive | $1,564 | $1,618 |
| Indiana | Nationwide | $1,698 | $1,756 |
| Indiana | Farmers | $2,994 | $3,133 |
| Iowa | Travelers | $1,186 | $1,224 |
| Iowa | Progressive | $1,377 | $1,397 |
| Iowa | Auto-Owners | $1,439 | $1,498 |
| Kansas | Nationwide | $1,341 | $1,388 |
| Kansas | Travelers | $1,646 | $1,704 |
| Kansas | Progressive | $1,868 | $1,917 |
| Kansas | Auto-Owners | $1,915 | $1,986 |
| Kansas | Farmers | $4,050 | $4,276 |
| Kentucky | Travelers | $1,846 | $1,893 |
| Kentucky | Auto-Owners | $1,964 | $2,017 |
| Kentucky | Progressive | $3,275 | $3,336 |
| Kentucky | Allstate | $4,026 | $4,162 |
| Kentucky | Farmers | $6,016 | $6,260 |
| Maine | Travelers | $813 | $835 |
| Maine | Auto-Owners | $818 | $853 |
| Maine | Progressive | $1,049 | $1,078 |
| Maine | Frankenmuth Insurance | $1,402 | $1,503 |
| Maine | Farmers | $2,603 | $2,671 |
| Maryland | Travelers | $1,981 | $2,026 |
| Maryland | Progressive | $2,405 | $2,438 |
| Maryland | Kemper | $2,586 | $2,678 |
| Maryland | Farmers | $5,291 | $5,499 |
| Massachusetts | Safety Insurance | $1,772 | $1,797 |
| Massachusetts | Progressive | $2,399 | $2,464 |
| Massachusetts | Travelers | $2,701 | $2,780 |
| Michigan | Auto-Owners | $3,064 | $3,168 |
| Michigan | Progressive | $3,263 | $3,314 |
| Michigan | Allstate | $5,470 | $5,764 |
| Minnesota | Nationwide | $1,589 | $1,625 |
| Minnesota | Travelers | $1,815 | $1,867 |
| Minnesota | Auto-Owners | $1,983 | $2,050 |
| Minnesota | Farmers | $4,033 | $4,227 |
| Mississippi | Nationwide | $1,370 | $1,406 |
| Mississippi | Travelers | $1,678 | $1,725 |
| Mississippi | Progressive | $1,884 | $1,984 |
| Mississippi | Shelter Insurance | $2,466 | $2,567 |
| Mississippi | Farmers | $2,923 | $3,073 |
| Missouri | Travelers | $1,687 | $1,735 |
| Missouri | Auto Club Enterprises (AAA) | $3,560 | $3,701 |
| Missouri | Progressive | $3,645 | $3,736 |
| Missouri | Farmers | $10,309 | $10,844 |
| Montana | Progressive | $2,579 | $2,665 |
| Montana | Kemper | $2,732 | $2,793 |
| Montana | Farmers | $7,486 | $7,931 |
| Nebraska | Nationwide | $1,209 | $1,254 |
| Nebraska | Auto-Owners | $1,316 | $1,361 |
| Nebraska | Progressive | $1,941 | $1,975 |
| Nebraska | Farmers | $4,104 | $4,330 |
| Nevada | Travelers | $2,105 | $2,141 |
| Nevada | American Family | $2,826 | $2,884 |
| Nevada | Farmers | $3,537 | $3,675 |
| Nevada | Progressive | $3,747 | $3,788 |
| Nevada | CSAA Insurance (AAA) | $6,422 | $6,579 |
| New Hampshire | Auto-Owners | $984 | $1,027 |
| New Hampshire | The Hanover | $1,052 | $1,089 |
| New Hampshire | Progressive | $1,379 | $1,433 |
| New Hampshire | Mapfre Insurance | $1,424 | $1,493 |
| New Hampshire | Farmers | $2,090 | $2,197 |
| New Jersey | Travelers | $1,974 | $2,004 |
| New Jersey | Progressive | $2,537 | $2,609 |
| New Jersey | Farmers | $3,194 | $3,288 |
| New Mexico | Progressive | $1,813 | $1,847 |
| New Mexico | Farmers | $2,343 | $2,445 |
| New Mexico | Iowa Farm Bureau | $2,517 | $2,543 |
| North Dakota | Nationwide | $1,185 | $1,232 |
| North Dakota | American Family | $1,193 | $1,247 |
| North Dakota | Progressive | $1,331 | $1,356 |
| North Dakota | Auto-Owners | $1,830 | $1,902 |
| Ohio | Nationwide | $882 | $908 |
| Ohio | Auto-Owners | $1,377 | $1,425 |
| Ohio | Travelers | $1,422 | $1,465 |
| Ohio | Erie Insurance | $1,228 | $1,520 |
| Ohio | Progressive | $1,729 | $1,749 |
| Oklahoma | Shelter Insurance | $2,354 | $2,469 |
| Oklahoma | Mercury Insurance | $2,574 | $2,633 |
| Oklahoma | Progressive | $3,073 | $3,150 |
| Oklahoma | Farmers | $3,673 | $3,836 |
| Oregon | Travelers | $1,629 | $1,669 |
| Oregon | Nationwide | $1,766 | $1,804 |
| Oregon | Kemper | $1,950 | $2,008 |
| Oregon | Progressive | $1,965 | $2,025 |
| Oregon | Farmers | $2,930 | $3,054 |
| Pennsylvania | Travelers | $1,142 | $1,174 |
| Pennsylvania | Nationwide | $1,317 | $1,372 |
| Pennsylvania | Erie Insurance | $1,557 | $1,736 |
| Pennsylvania | Progressive | $2,292 | $2,313 |
| Pennsylvania | Farmers | $5,493 | $5,764 |
| Rhode Island | Progressive | $2,006 | $2,027 |
| Rhode Island | Travelers | $2,128 | $2,187 |
| Rhode Island | American Family | $2,273 | $2,369 |
| Rhode Island | Farmers | $3,487 | $3,643 |
| South Dakota | Nationwide | $1,967 | $2,042 |
| South Dakota | Auto-Owners | $2,625 | $2,741 |
| South Dakota | Progressive | $3,849 | $3,945 |
| Tennessee | Travelers | $1,439 | $1,482 |
| Tennessee | Auto-Owners | $1,517 | $1,572 |
| Tennessee | Nationwide | $1,691 | $1,746 |
| Tennessee | Progressive | $2,370 | $2,462 |
| Tennessee | Farmers | $2,884 | $3,018 |
| Texas | Auto Club Enterprises (AAA) | $2,140 | $2,215 |
| Texas | Mercury Insurance | $3,219 | $3,251 |
| Texas | Progressive | $3,495 | $3,556 |
| Texas | Farmers | $3,809 | $3,899 |
| Utah | Nationwide | $1,244 | $1,279 |
| Utah | Auto-Owners | $1,588 | $1,631 |
| Utah | Progressive | $2,062 | $2,110 |
| Utah | Farmers | $3,994 | $4,169 |
| Vermont | Progressive | $913 | $948 |
| Vermont | Auto-Owners | $992 | $1,039 |
| Vermont | Nationwide | $1,189 | $1,230 |
| Vermont | American Family | $1,185 | $1,240 |
| Vermont | Vermont Mutual | $1,353 | $1,424 |
| Vermont | Farmers | $2,612 | $2,756 |
| Virginia | Nationwide | $1,048 | $1,084 |
| Virginia | American Family | $1,140 | $1,185 |
| Virginia | Travelers | $1,163 | $1,195 |
| Virginia | Mercury Insurance | $1,550 | $1,601 |
| Virginia | Auto-Owners | $1,629 | $1,678 |
| Virginia | Progressive | $1,817 | $1,879 |
| Virginia | Farmers | $4,464 | $4,672 |
| Washington | Kemper | $1,254 | $1,283 |
| Washington | Nationwide | $1,676 | $1,713 |
| Washington | Travelers | $1,713 | $1,752 |
| Washington | State Farm | $1,822 | $1,869 |
| Washington | American Family | $1,849 | $1,888 |
| Washington | Progressive | $2,267 | $2,334 |
| Washington | Farmers | $2,993 | $3,085 |
| Washington | USAA | $996 | $1,047 |
| Washington, D.C. | Progressive | $1,988 | $2,070 |
| West Virginia | Nationwide | $1,349 | $1,381 |
| West Virginia | Progressive | $1,688 | $1,726 |
| Wisconsin | Travelers | $1,218 | $1,252 |
| Wisconsin | Auto Club Group - ACG (AAA) | $1,423 | $1,505 |
| Wisconsin | Erie Insurance | $1,545 | $1,733 |
| Wisconsin | Nationwide | $1,935 | $1,993 |
| Wisconsin | Auto-Owners | $2,148 | $2,221 |
| Wisconsin | Progressive | $2,915 | $2,947 |
| Wisconsin | Farmers | $4,246 | $4,452 |
How does gap insurance work?
“Imagine you finance a car for $40,000,” says McKenzie. “A year later, the car is totaled in an accident or stolen and not recovered. At that point, the insurance company determines the car’s actual cash valueActual Cash Value (ACV) is the current market value of your car, considering depreciation. It's the amount your insurance will pay if your car is totaled or stolen. is $33,000 and pays out that amount. If you’ve paid only $4,000 toward the loan, you still owe $36,000, leaving a $3,000 gap. Gap Insurance covers that difference so you’re not left paying for a car you no longer have.”
You should also factor in any deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim. you’re responsible for. Take a look at the table below to see how McKenzie’s scenario plays out with a $1,000 deductible:
| Remaining balance on the car loan | $36,000 |
| Actual cash value of the car | $33,000 |
| Comprehensive or collision deductible (you pay this before your insurance company pays its share) | $1,000 |
| Insurance company pays | $32,000 |
| How much you would have to pay without Gap insurance | $4,000 |
“Without gap Insurance, drivers in this situation could be stuck with no car and an outstanding loan balance,” she says.
Frequently asked questions
How much is gap insurance per month?
“Typically, gap coverage adds about $10 to $15 per month to an auto policy and can offer important financial protection in the early years of a loan or lease,” McKenzie says.
How much is gap insurance on a used car?
Gap insurance on a used car is inexpensive, but some insurance companies only offer it for newer cars. The price will depend on the make and model, your other insurance coverage and your driving record.
How much is gap insurance in Texas?
In Texas, adding gap coverage to your car insurance costs about $70 a year. This is just an average; your cost may be more or less.
How much is gap insurance in California?
It costs about $94 annually to add gap coverage to your car insurance in California. Again, this could be more or less, depending on your situation.
Helpful auto insurance tools and calculators
