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

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Polina Solovyeva

By: Polina Solovyeva

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 Alaska

Gap insurance—short for “guaranteed asset protection—is an optional insurance policy that helps Alaska drivers avoid high out-of-pocket costs in the event of a total loss accident or a theft. Luckily, there are many insurance companies in Alaska that offer this add-on. Check out cheap gap insurance options in Alaska on Insurify today!

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Best Companies for Gap Insurance in Alaska

Not all car insurance companies offer gap insurance, but luckily, there are multiple great car insurance providers in Alaska that offer gap coverage. In the table below, you can find average monthly car insurance quotes for leased vehicles in Alaska.

Insurance CompanyAverage Monthly Cost for Leased Cars in Alaska
Midvale Home & Auto$201
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

Progressive

As one of the top insurance companies for gap insurance coverage, Progressive is an option for Alaska drivers looking to insure their leased vehicles. Progressive offers gap insurance as a coverage add-on with a deductible, and is a great option for gap coverage in Alaska.

Nationwide

A leading auto insurance provider, Nationwide should be on every Alaska driver’s mind when insuring a leased vehicle. Nationwide offers affordable gap insurance as an add-on to existing auto insurance policies.

See More: Cheap Car Insurance in Alaska

What is gap insurance?

What does gap insurance cover in Alaska?

GAP is an acronym for guaranteed asset protection. When you finance a new vehicle, the actual cash value may depreciate below what you owe in payments, so gap insurance cover the difference between the actual cash value and what you owe.

After you purchase a new vehicle, its value goes down anywhere from 20 to 30 percent in just the first year. If you are financing your vehicle, this depreciation in value creates a gap between your car’s actual cash value (what it’s worth) and how much you owe on it. For example, your car may be worth $10,000 two years after you purchase it, but you may still owe $15,000 on it.

The difference between what you owe on your vehicle and its actual cash value (ACV) is known as negative equity or being “upside-down.” The problem with negative equity is that in the event of a total loss accident, your auto insurance coverage will only reimburse you for your car’s ACV—not for the original amount you paid for it.

Gap insurance covers the difference between what you owe on your car and its actual cash value so you don’t end up paying off a car you no longer drive. For example, if you file a total loss claim on a car valued at $12,000 while still having to pay off $15,000 on it—accumulating $3,000 in debt—gap insurance will cover this difference.

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Who should buy gap insurance in Alaska?

Gap insurance is an optional auto insurance policy, but as a general rule, all Alaskan drivers who are financing their vehicles should consider investing in it. The only scenario in which you may not need gap insurance is if you make a large down payment—at least over 20 percent—which significantly lowers your chances of having negative equity.

The following factors increase your chances of ending up with negative equity. You should especially consider purchasing a gap insurance policy if:

  • You made a down payment of less than 20 percent. Making a low down payment means that your vehicle will depreciate faster and more significantly.
  • You have a long-term loan or leasing obligation. The longer it takes you to pay off your vehicle, the higher your chances of ending up with negative equity. If you know it’s going to take you over 60 months to finish paying off your loan, consider getting gap insurance to protect yourself.
  • You are planning on driving long distances. If you’re financing your vehicle and know that you’re going to use it to travel long distances, gap insurance is a smart coverage option for you. The more miles you drive, the faster your vehicle loses its value, so invest in gap insurance if you know you’re going to regularly cover long distances.
  • You drive a luxury vehicle. Certain vehicle models, such as luxury vehicles and sports cars, lose their value faster than more standard models. If you are financing a luxury vehicle, it’s a good idea to invest in gap insurance to protect yourself against high out-of-pocket costs in the event of a car accident or theft.

Alaska Gap Insurance Laws

The state of Alaska doesn’t require gap insurance, so it’s up to you whether you want to add it to your auto insurance coverage. To comply with proof of insurance laws, you only need the minimum required liability coverage—bodily injury liability and property damage liability—and the underinsured/uninsured motorist coverage (but you can reject this coverage in writing).

If you’re financing your vehicle, your lending institution may require you to get full coverage—comprehensive coverage and collision coverage—with gap insurance as an add-on. Getting more than minimum coverage doesn’t have to break the bank when you shop for car insurance with Insurify. Use it to find cheap car insurance with the best coverage in minutes!

How much gap insurance do I need in Alaska?

How much gap insurance you need as an Alaskan driver depends on how fast you anticipate your new vehicle depreciating, how much outstanding loan balance you have, and your personal budget and preferences. On average, new vehicles depreciate over 60 percent over the course of five years.

When you shop for Alaska car insurance with Insurify, you get personalized suggestions on the best car insurance coverage for your unique situation. With a 4.8/5 customer satisfaction rating on Shopper Approver and over 3,000 customer reviews, Insurify is the top-rated and most-rated car insurance quote comparison tool in the U.S.!

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Alaska

Gap insurance covers negative equity—the difference between what you owe on your car and its actual cash value—only in the event of a total loss car accident or theft. If you get into a car accident but your car is not totaled, gap insurance will not kick in, but you can use your comprehensive and collision policies to cover the damage.

There are a few more important gap insurance specifics that are important to be aware of:

  • You can only add gap insurance as an add-on if you already have comprehensive and collision coverage. If you don’t have full coverage, you will only be able to get gap insurance as a stand-alone policy, which is more expensive.
  • Gap insurance works regardless of fault. It will cover your negative equity regardless of whether it was you or the other driver who caused the accident that resulted in total loss.
  • Gap insurance rarely covers the deductible.
  • Gap insurance doesn’t cover medical bills or lost wages. It only applies to negative equity in the event of a total loss accident or theft.

How Much Gap Insurance Costs in Alaska

On average, you can expect monthly auto insurance rates of $201 in Alaska if you’re driving a leased vehicle. Lending institutions often require full coverage, and not just the minimum required liability insurance and underinsured/uninsured motorist coverage.

How much you pay for a gap insurance policy in Alaska depends on where you get it from. You can buy gap insurance coverage from a car dealership, a bank, and a car insurance company as a stand-alone policy, or as an add-on to your full coverage.

The difference between these options is the price. It can cost as little as $20 per year to add gap insurance coverage to your comprehensive and collision policies as an add-on, but getting it from a car dealership can cost over $700+ in flat fees. Similarly, buying gap insurance coverage as a stand-alone policy can cost you a one-time fee of over $200–$300+.

See More: Average Cost of Car Insurance in Alaska

How to Buy Gap Insurance in Alaska

The cheapest and easiest way to get gap insurance in Alaska is as an add-on to your full-coverage policy. If you don’t have existing comprehensive and collision coverage, you can also get gap insurance coverage as a stand-alone policy.

Whether you’re shopping for a full-coverage policy with gap insurance as an add-on or for a stand-alone policy, it’s important to get at least four quotes from different car insurance providers to find the best deal. Different auto insurance companies weigh factors such as your credit score and driving record to calculate your car insurance rate, and shopping around maximizes your chances of finding the lowest quote.

But shopping for car insurance on your own can be a tedious process that takes hours of your time. You’d have to fill out multiple long application forms to request a quote from each insurance agent and then manually compare them, trying to understand which provider is offering you the best coverage, premiums, and deductibles.

Instead, use Insurify, an AI-powered comparison tool that can help you find the best car insurance coverage for you at the cheapest rate in under five minutes. Answer a few basic questions just once, and get instant access to 10+ Alaska auto insurance quotes that you can easily compare in one place. It’s fast, convenient, and free!

Frequently Asked Questions: Gap Insurance in Alaska

  • There is no insurance requirement to carry gap insurance in Alaska. However, purchasing gap coverage is a smart option for Alaskan drivers who are financing their vehicles, and in some cases, your lending institution may require it. Whether you’re shopping for gap insurance as an add-on to full coverage or as a stand-alone policy, use Insurify to find the cheapest rates.

  • If you pay your gap insurance premium in advance and pay off your vehicle early, you may be eligible for a partial gap insurance policy refund, but ultimately, this depends on your car insurance provider. To find the best car insurance company in Alaska to buy gap insurance from, use Insurify.

  • Your car insurance costs depend on different factors, such as how long you’ve had your driver’s license and whether you have a good credit score or any DUIs on your driving record. The best way to find cheap gap insurance in Alaska is to use Insurify to compare 10+ car insurance quotes and get the best deal for you.

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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.

Polina Solovyeva
Polina Solovyeva

Insurance Writer

Polina Solovyeva is a writer for mission-driven brands and entrepreneurs, specializing in auto insurance and personal finance. Polina writes to help consumers better understand their insurance coverage.

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