What is Progressive Car Insurance Gap Coverage?

Gap coverage is an important feature offered by Progressive Car Insurance that helps provide financial protection in the case of an accident. It is designed to bridge the gap between the amount you owe on your car loan and the amount your car insurance will pay out in the event of a total loss. Without gap coverage, you could be left with a substantial out-of-pocket expense if your car is totaled in an accident.

When you purchase a car, unless you have the funds to pay for it in full, you will likely take out a loan for the balance. Your loan will typically cover the full purchase price plus taxes, fees, and interest. But if your car is totaled in an accident, your car insurance may only pay out the actual cash value of the vehicle, which is usually much less than the amount you still owe on the loan. That is where gap coverage can help.

How Progressive Car Insurance Gap Coverage Works

Progressive Car Insurance Gap Coverage helps pay the difference between the actual cash value of your car and the balance of your loan or lease. This coverage is available as an optional add-on to your Progressive Car Insurance policy. It may be offered by your lender as well, so it is important to check with them to see if they provide this coverage.

Gap coverage is typically only available for vehicles that are less than five model years old and are financed or leased through a bank or other lending institution. It is important to note that gap coverage will not provide coverage for any other added costs such as towing, storage, or taxes and fees.

Is Progressive Car Insurance Gap Coverage Worth It?

For most drivers, gap coverage could be a good option depending on the age and value of your car. If you have an older car with a low value, gap coverage may not be necessary. However, if you have a newer car with a high loan balance, gap coverage could protect you from a significant financial loss if your car is totaled.

Ultimately, gap coverage could provide peace of mind by knowing that you are protected in case of an accident. If you are unsure whether or not gap coverage is necessary for your situation, it is a good idea to speak with your insurance agent to discuss your options.