Cost Of Gap Insurance Progressive
What is Gap Insurance and How Does It Work With Progressive?
Gap insurance, also known as loan/lease payoff coverage, is an additional form of coverage that helps protect you if your vehicle is totaled or stolen and you owe more on the loan or lease than the vehicle is worth. Gap insurance pays the difference between the actual cash value of your vehicle and the amount you still owe on your loan or lease. It can help pay off the remaining loan or lease balance, so you're not stuck with a bill for a vehicle you can't even drive. Progressive offers competitive rates on gap insurance and can help you decide if it's the right coverage for you.
What Does Gap Insurance Cover?
Gap insurance covers the difference between what you owe on your loan or lease and the actual cash value of your car, minus any deductible. This type of coverage can be important if you purchase a vehicle with a loan or lease and the actual cash value of the vehicle is less than what you owe on the loan or lease. For example, if you owe $15,000 on a loan or lease and your vehicle's actual cash value is only $10,000, gap insurance can help cover the remaining $5,000.
Why Do I Need Gap Insurance?
Gap insurance can be beneficial if you’re financing or leasing a vehicle and the actual cash value is less than the remaining loan or lease balance due to depreciation. It can help you avoid having to pay for a vehicle that you no longer own, as gap insurance would cover the difference between the actual cash value and the remaining loan or lease balance. Depending on your loan or lease terms, you may be required to purchase gap insurance. It’s important to check with your lender to determine if gap insurance is required.
What Does Progressive Offer?
Progressive offers a variety of gap insurance options to meet your needs. You can add gap insurance to your existing Progressive auto policy for vehicles purchased in the last year, and you can also purchase gap insurance for vehicles purchased up to three years ago. Progressive also offers gap insurance for vehicles with a loan or lease up to 120 months, and you can easily choose the length of coverage that fits your needs. Additionally, you can add gap insurance to your Progressive policy at any time.
What Else Should I Know?
It’s important to note that gap insurance is not required by law, and it’s not always necessary. If you have a new vehicle and you plan to pay off the loan or lease in a short period of time, gap insurance may not be necessary. However, if you have an older vehicle or you’re financing or leasing a vehicle for a longer period of time, gap insurance can be beneficial. If you're unsure if gap insurance is right for you, contact us to discuss your options.
Get the Gap Insurance Coverage You Need With Progressive
Gap insurance can be a beneficial form of coverage, especially if you have an older vehicle or you’re financing or leasing a vehicle for a longer period of time. With Progressive, you can easily add gap insurance to your existing auto policy and choose the length of coverage that’s right for you. Plus, you can add gap insurance at any time, and our competitive rates make it an affordable option. Contact us today to learn more about gap insurance and to get a quote.
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