Where to purchase GAP insurance?

I have a lease contract due in couple month and looking to get couple cars within next couple months. I see people recommend to get GAP insurance instead of putting down payment in this forum. I wonder if I shall get GAP insurance for new car that I want to lease? If so, what is the best route/cheapest way to get GAP insurance?

Hi, the answers may or may not vary depending on the state in which you live.

This info is from my experiences.

In Florida, Gap insurance is automatically included in the lease price. No extra cost. Zero.

But if you FINANCE, not lease, you may want to add Gap insurance to your auto insurance policy. For me this was less than $25 per YEAR, with Progressive.

Car dealers sometimes try to trick people into paying $100s of dollars per year to buy it from them when they finance (not lease) a car through the dealership.

Hope this helps.

First, you need to understand what Gap insurance is, and then make a determination on whether you would need or want to purchase it. The short version, Gap insurance pays for the difference between your loan/lease amount and the depreciated value of your vehicle at the time of loss. I.e, you leased a car, and you were involved in an accident 2 years later. the vehicle was deemed a total loss. At the time of loss, the car was worth 10k, but your pay off/ buy out was 13k. gap insurance will pay the 3k difference that you will owe the bank. So, if you had put a down payment on the vehicle you would have lost that money because no one will pay you that money back.

Based on my personal experience, the cost of GAP insurance when bought at the dealership is between 399-599 for the length of the lease/loan.

Nowadays, most standard auto insurance companies offer lease/loan gap insurance but sometimes is limited to only years, but the premium is a lot more affordable because the coverage is added as an additional coverage on regular auto insurance policy. (I am an insurance agent)

I hope you find the information useful!


Thanks to both reply. I am from L.A. and with Geico auto insurance. I just check their site, and they do not offer GAP insurance, therefore, I am looking to see where else besides dealship offer reasonable GAP insurance rate

I’m also in LA and all my lease already have the gap insurance covered in it. But i also ask regards to make sure at the time of the lease. It is usually checked marked on the lease.

I’m in nj and about to lease a Toyota… My insurance company said they don’t offer gap… Where is the best place to purchase gap insurance?

It’s $399 at PenFed, if someone interested


@Huda337 where, if any, did you ultimately purchase GAP insurance from?

you just reminded me!! lol
i was gonna move to progressive, was cheaper than gieco ans was an add $2/3 a month… got busy and completely forgot… thanks for the reminder;)

Be careful about that so called gap insurance from your insurance. Mostly don’t full cover all of the difference in ur gap insurance. I have Mercury and it is cheap from them. However they don’t really cover the difference of value of the car vs what you owe. Only a percentage of that difference :anguished:

I know it sux. But with lease here in California gap insurance is always included. At least that what I notice in all the 4 cars I have lease.

You joined a predominantly US forum just to plug a British insurance company via broken English?

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