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Best Cheap Gap Insurance Companies in Alabama: Quotes, Discounts (2022)

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Doug Shaffer

By: Doug Shaffer

Edited by Tanveen Vohra | Reviewed by licensed insurance agent, Amber Benka

Last Updated June 15, 2022

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

Gap Insurance in Alabama

Often, Alabama drivers will use an auto loan or participate in a leasing program to purchase a car. Gap insurance provides financial protection in the event of your leased car being totaled by covering the remaining costs of a car loan or lease. For drivers looking for cheap gap insurance, Insurify offers an easy-to-use platform where you can compare multiple quotes within a matter of minutes.

See More: Compare Car Insurance

Best Companies for Gap Insurance in Alabama

If you are planning on leasing a new vehicle and need to purchase an auto insurance policy like gap insurance, you should consider getting quotes from the following Alabama insurance providers.

Insurance CompanyAverage Monthly Cost for Leased Cars in Alabama
Amigo USA$137
Travelers$140
SafeAuto$155
Nationwide$162
GAINSCO$174
InsureMax$178
Direct General$196
Safeco$197
AssuranceAmerica$219
Midvale Home & Auto$229
Bristol West$301
Arrowhead$365
Liberty Mutual$381
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

What is gap insurance?

Gap insurance, which stands for guaranteed asset protection, is optional insurance coverage that financially helps cover the gap left between a vehicle’s actual value and any remaining balances on a loan or lease if the car is stolen or totaled in an accident. Drivers who don’t have this protection could be forced to pay the difference—which can amount to tens of thousands of dollars—out of pocket.

While there isn’t a state law in Alabama that says you must carry gap insurance, your lender will most likely require you to purchase the coverage. This guarantees that a loan or lease will be paid off, even if your vehicle is involved in an accident and deemed a total loss.

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Who should buy gap insurance in Alabama?

When it comes to buying gap insurance in Alabama, four different groups of people should consider purchasing a policy. These groups consist of:

  • Those who have leased their car or truck through a dealership
  • Those who made a down payment of 20 percent or less when purchasing their vehicle
  • Those with an auto loan that will last longer than five years
  • Those with a car that depreciates faster than others

Alabama Gap Insurance Laws

In Alabama, standard auto insurance coverage is required, but having a gap insurance policy is not. Instead, the lenders who provide financing often require drivers to purchase the additional coverage. You will want to speak with your financial institution to see if they need you to have gap insurance.

How much gap insurance do I need in Alabama?

Every situation is different, and the exact amount of gap insurance you need could differ from what another driver might need. With this in mind, it is essential to review gap insurance quotes carefully before making a decision. Some policies pay up to only 25 percent of a car’s value instead of the entire remaining loan balance. This could still leave you paying out of pocket.

Other insurance companies or lenders will provide gap coverage options that pay off the entire balance of the loan regardless of how much is left over. While these plans may be a little more costly, they can save you thousands of dollars if you ever need the coverage.

Ultimately, the only way to know which option is best for you is to shop around and compare multiple quotes.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Alabama

In Alabama, gap insurance is a car insurance coverage option that pays for the gap between a car’s value and any remaining balance on a lease or loan. Should your vehicle be stolen or totaled in an accident, gap insurance will help you pay off some or all of your auto loan or lease.

Unlike other auto insurance products like comprehensive coverage, liability coverage, or bodily injury liability coverage, gap insurance has a unique feature. If you pay your premiums in advance and pay off your vehicle loan early, you may receive money back.

How Much Gap Insurance Costs in Alabama

How much is gap insurance in Alabama?

The average cost to insure a leased vehicle in Alabama is $242 per month. However, what you pay for gap insurance will largely depend on whether you buy gap insurance from your car dealership or from your insurance provider.

Many factors could play a role in determining how much you pay each month for gap insurance, including:

  • Vehicle age
  • Location
  • Vehicle’s actual cash value
  • Claims history for a vehicle

However, most drivers in Alabama can expect to pay about $242 per month for car insurance that includes a gap insurance policy.

See More: Average Cost of Car Insurance in Alabama

How to Buy Gap Insurance in Alabama

If you are a driver who needs gap insurance, there are several ways to obtain coverage in Alabama. The three most common places to get guaranteed asset protection are a car dealership, a lender, and an insurance company. Since all three offer different rates and policies, it is essential to compare quotes before purchasing a plan.

A platform like Insurify makes the process of reviewing multiple quotes much easier and allows drivers to compare policies within seconds on a single page. Finding cheap gap car insurance rates has never been easier.

Frequently Asked Questions: Gap Insurance in Alabama

  • Alabama drivers aren’t legally required to carry gap insurance by the state. However, motorists planning on taking out a loan or leasing their next vehicle may be required to purchase gap insurance by their lender. You will want to speak with the lending company about their specific requirements.

  • Drivers in the state of Alabama who have gap insurance may be able to get money back. Generally, this is only the case if you pay your insurance policy in advance and pay off your vehicle early. Those who are currently paying monthly premiums for their gap coverage aren’t eligible to get money back.

  • Finding the right insurance company to purchase cheap gap insurance from can be difficult. Several Alabama car insurance companies offer the coverage, making it hard to compare quotes. Insurify simplifies the process by providing drivers with a list of quotes on a single page, making it easier to find the right coverage quickly.

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  • Personalized quotes in 5 minutes or less
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  • The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

    Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

    With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Doug Shaffer
Doug Shaffer

Insurance Writer

Doug Shaffer works as a content writer. He has had the opportunity to write for several national insurance carriers in the past and brings with him over six years of experience working with both business and consumer products. He enjoys being able to break down complex insurance jargon to allow consumers to fully understand their policies.

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