Gap Insurance Progressive: All You Need to Know

What Is Gap Insurance?

Gap insurance is an auto insurance policy that covers the difference between the actual cash value of your car and the amount you still owe on your car loan. It’s also known as “loan/lease gap coverage.” Gap insurance is typically offered by car dealerships and lenders, but you can also find it through some auto insurance companies, such as Progressive. Gap insurance is important to have if you’re financing or leasing a car, as it can protect you from financial loss in the event of an accident or theft.

What Does Gap Insurance Cover?

Gap insurance covers the gap between what you owe on your car loan and the current market value of your car. If your car is stolen or totaled in an accident and the insurance company only pays out the current market value, you could be left owing on your loan even though your car is no longer in your possession. Gap insurance will pay the difference between the amount your insurance company pays out and the actual cash value of your car.

How Much Does Gap Insurance Cost?

Gap insurance typically costs between 5 and 6 percent of the total loan amount. For example, if you take out a $20,000 loan, your gap insurance could cost anywhere from $1,000 to $1,200. Some lenders will offer gap insurance for free or at a discounted rate, so it’s always important to shop around and compare prices.

What Is Progressive Gap Insurance?

Progressive Gap Insurance is a product offered by Progressive Insurance that covers the difference between what you owe on your car loan and the actual cash value of your car in the event of theft or total loss. Progressive Gap Insurance is an optional product that can be added to your existing auto insurance policy. It’s important to note that gap insurance is only available for vehicles that are less than two years old, with a loan or lease term of five years or less.

How Much Does Progressive Gap Insurance Cost?

The cost of Progressive Gap Insurance will depend on the type of car you own and the loan or lease amount. Generally speaking, Progressive Gap Insurance costs between $20 and $30 per year. It’s important to note that Progressive Gap Insurance is only available for cars that are less than two years old, with a loan or lease term of five years or less.

Is Gap Insurance Worth It?

Gap insurance is a great way to protect yourself financially in the event of a total loss or theft. If you’re financing or leasing a car, gap insurance is a smart investment that can save you thousands of dollars in the long run. Gap insurance is relatively inexpensive and can provide you with peace of mind knowing that you’re protected in the event of an accident or theft. The cost of Progressive Gap Insurance is reasonable and definitely worth considering if you’re in the market for gap insurance.