Cost of State Farm Gap Insurance

Gap insurance is a helpful product that protects drivers from any financial losses they may incur if their vehicle is stolen or totaled in an accident. Gap insurance pays the difference between the vehicle's current market value and the balance of the vehicle loan, so drivers don't have to worry about paying off a loan for a car they can no longer use. State Farm is one of the most well-known auto insurers in the U.S., and they offer gap insurance to their customers. But what does State Farm gap insurance cost, and is it worth the investment?

What Does State Farm Gap Insurance Cover?

State Farm's gap insurance covers up to 25% of the vehicle's actual cash value if it's totaled or stolen and you still owe money on the loan. So if you still owe $20,000 on a car that's only worth $15,000, State Farm gap insurance will cover the remaining $5,000. State Farm also covers any leasing gap, meaning it will cover the difference between what's owed on the lease and the car's actual cash value. This coverage is subject to restrictions, so it's important to read the policy carefully and make sure you understand what is and isn't covered.

How Much Does State Farm Gap Insurance Cost?

The cost of State Farm gap insurance depends on a variety of factors, including the vehicle's make and model, the age of the driver, the state you live in, and the amount of coverage you need. Generally speaking, gap insurance costs anywhere from 5% to 8% of the vehicle's loan or lease balance. So if you finance or lease a vehicle for $20,000, you can expect to pay anywhere from $1,000 to $1,600 for gap insurance.

Is State Farm Gap Insurance Worth the Cost?

When it comes to gap insurance, the cost is well worth the peace of mind it provides. In the event that your vehicle is totaled or stolen and you still owe money on the loan, gap insurance will cover the difference between the loan balance and the car's actual cash value, so you don't have to worry about it. If you can afford the cost of gap insurance, it's definitely worth the investment.

Can I Get State Farm Gap Insurance After I Buy a Car?

Yes, you can get State Farm gap insurance after you purchase a vehicle. You can either purchase gap insurance through your lender or dealer, or you can purchase it directly from State Farm. If you already have a State Farm auto policy, you can add gap insurance to your existing policy for an additional cost.

How Do I Get State Farm Gap Insurance?

If you're interested in purchasing State Farm gap insurance, you can contact your State Farm agent to discuss your options and get a quote. Be sure to have your vehicle make and model, vehicle loan or lease information, and other relevant information ready, so your agent can provide you with an accurate quote. You can also visit the State Farm website to learn more about gap insurance and get a quote online.

Gap insurance is a great way to protect yourself from any financial losses in the event that your vehicle is stolen or totaled in an accident. State Farm offers gap insurance to their customers, but it's important to understand the cost and coverage before making a decision. Research your options carefully and make sure you understand what is and isn't covered, so you can make an informed decision and be sure you're getting the coverage you need.