How to Get Cheap Gap Insurance in Florida
- Travelers is Florida’s cheapest car insurance company for gap insurance.
- Lenders, dealers and leasing companies also offer gap coverage.
- Getting it from your insurance company is often a better deal.
Cheap Florida gap insurance
Travelers is Florida’s cheapest car insurance company for gap insurance. It charges an average of $158 a month for minimum gap coverage Minimum coverage includes personal injury protection, property damage liability, collision, comprehensive and gap coverage. . Its full coverage Full coverage includes bodily injury liability and uninsured motorist coverage. rates average $228 a month.
Florida gap insurance rates
| Company | Monthly minimum coverage | Monthly full coverage | LendingTree score | |
|---|---|---|---|---|
 | Travelers | $158 | $228 |  |
 | Progressive | $233 | $306 |  |
 | Mercury | $276 | $537 |  |
 | Allstate | $474 | $790 | |
 | Farmers | $645 | $953 | |
Your actual rate depends on factors like your driving record, your credit and your vehicle. Each company’s rates vary by customer. This makes it good to compare car insurance quotes from a few different companies.
How much is gap insurance in Florida?
Although gap coverage itself is cheap, insurance companies don’t offer it on a stand-alone basis. You have to have an existing policy with collision Collision covers damage to your car from a collision with another vehicle or object. and comprehensive Comprehensive covers your car for theft and damage from non-collision causes, like fire, flood and vandalism. (comp) coverage. These coverages have a much bigger impact on your rate than gap insurance does.
Gap insurance is also harder to find than normal auto insurance. Some Florida auto insurance companies don’t offer gap insurance. Some only offer it for newer cars.
This means you may have to switch car insurance companies to get gap insurance. If your current company is cheaper than the ones with gap coverage, your overall auto insurance cost will go up.
What is gap insurance in Florida?
Auto insurance covers your car at its depreciated value. In some situations, this may be lower than your loan balance. If your car is totaled or stolen during this time, your insurance check won’t fully repay your loan. Gap insurance covers this shortfall.
For leased vehicles, gap insurance covers the difference between the vehicle’s value and your remaining lease payments.
If you keep up with your car payments, you’ll eventually owe less for your car than it’s worth. You usually don’t need gap insurance after this.
Who else offers gap insurance in Florida?
There are a few major differences between gap insurance and gap waivers.
- Payment: You pay the entire cost of a gap waiver up front. Folding this into your car loan adds to your interest charges. Insurance companies add the cost of gap coverage to your normal insurance bill.
- Removal: It’s easy to remove gap coverage from car insurance when you no longer need it. Gap waivers usually last for the entire loan or lease. This can force you to pay for some coverage that you don’t need.
Recent changes to Florida law require gap waivers to include a free-look period. Some lenders now also offer refundable gap waivers.
- Free-look period: You usually now have 30 days to cancel a gap waiver. If you initially accept a gap waiver, you can shop for a better deal from an insurance company during this time.
- Refundable gap waivers. You can cancel a refundable waiver when you no longer need it and get a refund for unused coverage. Refundable gap waivers tend to cost more than nonrefundable ones. They may also have early termination fees.
Is gap coverage cheaper from insurance companies in Florida?
For example, Navy Federal Credit Union’s gap protection costs $499 for the life of a loan. MIDFLORIDA Credit Union has separate gap coverage options that cost $599 and $699. Over a five-year loan, these costs average about $8 to $12 a month. This is only slightly higher than the average rate from insurance companies.
It’s good to get insurance quotes with gap coverage before you sign a loan or lease agreement. This way, you can compare insurance company rates to any gap waivers you are offered.
Is gap insurance required in Florida?
Gap insurance is not required by Florida law. However, lenders may make you get it for a car loan if you:
- Finance a car with a no- or low-down-payment loan
- Include the unpaid balance from a prior car loan in a new loan
You usually also need gap coverage for a leased vehicle.
You can buy gap insurance even if your lender doesn’t require it. This can come in handy during the early years of a loan.
Dealerships, lenders and leasing companies often give you a choice. You can either buy gap protection from them or get it from an insurance company.
How to shop for gap coverage
It’s good to look at your combined insurance costs when you shop for gap coverage.
You’re usually better off getting gap coverage from a car insurance company if:
- Your current company is already affordable and offers gap insurance.
- Switching to a company with gap coverage won’t increase your overall car insurance rate by too much.
On the other hand, other providers may be better for gap protection if:
- Switching to a company with gap coverage sharply increases your overall car insurance rate.
- You can get a refundable gap waiver and non-gap car insurance for less than car insurance with gap coverage.