Does Progressive Provide Gap Insurance?

Gap insurance is an important financial product for car owners. It helps cover the difference between the amount you owe on the car and the car’s actual cash value in the event of a total loss. This gap can be significant, especially if you have a car loan. Insurance companies, such as Progressive, provide gap insurance for their customers. In this article, we’ll discuss what gap insurance is, how it works, and whether Progressive offers gap insurance.

What is Gap Insurance?

Gap insurance is a type of auto insurance that pays the difference between the actual cash value of your car and the amount you owe on your auto loan in the event of a total loss. If your car is totaled in an accident, your primary auto insurance policy will only pay you the actual cash value of the car, which may be significantly less than what you owe on the loan. Gap insurance can help bridge the gap and pay off the remaining balance.

How Does Gap Insurance Work?

Gap insurance works by covering the difference between the actual cash value of your car and the amount you owe on the loan. For example, if you owe $20,000 on your car loan and the car is only worth $15,000 in the event of a total loss, gap insurance would cover the remaining $5,000. It’s important to note that gap insurance is only applicable in the event of a total loss, not if your car is stolen or damaged in an accident. Gap insurance is also only applicable if you have a loan on the car. If you own the car outright, you don’t need gap insurance.

Does Progressive Offer Gap Insurance?

Yes, Progressive offers gap insurance as an optional add-on to your auto insurance policy. Gap insurance is available for new and used cars, and you can purchase it for up to seven years after you buy the car. Progressive’s gap insurance covers the difference between the actual cash value of your car and the amount you owe on your auto loan, up to $50,000. The cost of gap insurance will vary based on the deductible, coverage limits, and other factors.

Conclusion

Gap insurance is an important financial product for car owners. It helps cover the difference between the amount you owe on the car and the car’s actual cash value in the event of a total loss. Progressive offers gap insurance as an optional add-on to your auto insurance policy. Gap insurance is available for new and used cars, and you can purchase it for up to seven years after you buy the car. The cost of gap insurance will vary based on the deductible, coverage limits, and other factors.