Gap Insurance in Connecticut (2024)
Gap insurance helps protect drivers from losing money when an insurer pays less than their outstanding loan balance after a covered loss.
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Written byChristy Rakoczy
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Christy Rakoczy has been a personal finance and insurance writer for over a decade. Her work has been published on USA Today, MSN, Yahoo Finance, Credit Karma, Forbes Advisor, and more. Christy has a JD from UCLA School of Law and previously worked as a data analyst for Blue Cross and as a paralegal studies instructor before transitioning to writing full time.
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Edited byAshley Cox
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7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Updated October 29, 2024
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Table of contents
Gap insurance protects drivers with car loans and leases. If someone steals your vehicle or something damages it beyond repair, your insurer declares it a total loss and pays the actual cash value. This could be less than the cost to repay the vehicle loan balance or lease payoff amount.[1]
Connecticut drivers who don’t want to pay out of pocket in this situation should buy gap coverage, although it’s generally optional. Drivers with leases and loans longer than 60 months and people who finance brand-new cars or roll negative equity from past cars into their current loan can probably benefit from gap coverage.
Quick Facts
A full-coverage car insurance policy in Connecticut costs an average of $368 per month. Adding gap insurance to your full-coverage policy typically costs only $2 more each month.
Gap insurance covers the gap between the amount you owe the lender or lease provider and the amount the insurer pays for the vehicle.
Many companies offer affordable gap insurance in Connecticut, including Travelers, Nationwide, and Amica.
How gap insurance works
Gap insurance is short for “guaranteed asset protection” insurance. Insurers offer it as an add-on to collision and comprehensive insurance policies. These pay when you damage your car in a covered incident, such as a collision or theft.[2]
Comprehensive and collision insurance pay to repair your vehicle. But if something severely damages your car or someone steals it and the authorities can’t recover it, the insurer only pays the car’s actual cash value. Since it’s common to owe more than your vehicle is worth, this could mean you receive less than the full amount of your outstanding auto loan balance.
Without gap insurance, you’d have to pay the remaining balance out of your pocket for a car you no longer own.
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What gap insurance covers in Connecticut
Gap insurance only covers the difference between the amount an insurer pays and the amount you owe an auto lender or lease provider when a car is totaled or stolen and not recovered.
Here’s an example of how a gap insurance policy could protect against loss.
Let’s say you have an outstanding loan balance of $30,000, but your vehicle has depreciated and it’s now worth $25,000. If you total your car and have a $1,000 car insurance deductible, the insurance company would pay you $24,000, leaving you with $6,000 in out-of-pocket costs. If you have gap insurance, it will pay the $5,000 difference (minus your deductible).
Important Information
It’s important to note that gap insurance doesn’t cover an auto insurance deductible. Even with gap insurance, you have to pay your deductible amount when you make a covered claim.
Best gap insurance companies in Connecticut
Many Connecticut auto insurance companies offer affordable gap insurance. Here are some of the best insurers known for offering affordable rates and good customer service.
Travelers
TravelersCompare personalized, real-time quotes
| User Reviews | 3.4 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.0/10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $114/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $195/mo |
Travelers has its largest office in Hartford, Connecticut. The insurer provides gap coverage to Connecticut drivers who are original owners of financed or leased vehicles. You can add gap insurance to collision and comprehensive coverage, and Travelers offers very affordable rates for these protections in Connecticut.
Pros
Accident forgiveness available
Robust coverage selections and discount offerings
Cons
Rideshare coverage only available in Colorado and Illinois
High number of negative customer reviews with the Better Business Bureau
Read more driver reviews of Travelers
Vicki - October 27, 2024
Verified
Good but Costly
I had a great experience with Travelers and would still be with them, but I got a better rate with another company.
Nancy - October 23, 2024
Verified
Not Great by Any Means
Be careful when you submit a claim! They actually owe me $1,000 from five years ago and I still haven't received it.
Birdie - October 21, 2024
Verified
Expensive
I've never needed any claims for over 40 years, have no tickets, and an excellent credit score, yet my rates increased by 50%.
…
Nationwide
NationwideCompare personalized, real-time quotes
| User Reviews | 3.3 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.7/10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $125/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $213/mo |
Nationwide offers gap insurance as an optional add-on to its affordably priced auto coverage. Users praise its mobile-friendly app that offers a full array of helpful features and tools.
Pros
Numerous discount and savings opportunities
SmartRide (for safe drivers) and SmartMiles (for low-mileage drivers)
Cons
Not available in every state
Some discounts and programs not available in all states
Read more driver reviews of Nationwide
Ashley - October 29, 2024
Verified
Great company
Nationwide is a great company. I regret messing up with them!
Keirh - October 28, 2024
Verified
Unsatisfactory Service
I cancelled my insurance. Their rates are too high, they don't treat you properly, and they haven't refunded my money yet.
Earl - October 28, 2024
Verified
I was upset that I received a non-renewal letter over two issues that were resolved a year prior. My local representative resolved the issue quickly.
I was upset that I received a non-renewal letter over two issues that were resolved a year prior. My local representative resolved the issue quickly.
…
Amica
AmicaCompare personalized, real-time quotes
| User Reviews | 3.8 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.3/10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $279/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $475/mo |
Amica provides low-priced car insurance with affordable add-ons, including gap insurance. It also received above-average rankings on the J.D. Power 2023 U.S. Auto Insurance customer satisfaction survey, second only to GEICO, which doesn’t offer gap insurance coverage.
Pros
Good ratings for customer service and satisfaction
Multiple discounts and coverage options available
Cons
Higher-than-average rates for drivers with traffic violations
Limited number of local offices
Read more driver reviews of Amica
Bill - October 15, 2024
Verified
House and Auto Comparison
Amica is incredibly expensive. I am curious to see if other companies are as well.
Sheri - October 14, 2024
Verified
Love Amica
They are the best in customer service. I love them, but I am looking around just because my rates in Colorado are so high. I am not looking because there is anything I don't like about Amica.
Nina - October 7, 2024
Verified
Auto Insurance Too Expensive!
The prices increase significantly at every renewal without any notifications. The staff is nice, but it's just way too expensive.
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Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page.
The car insurance data includes coverage analysis and details on drivers’ vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums. The data included on this page represent averages across ages, genders, credit scores, and driver profiles for Connecticut drivers.
Cheapest recent rates in Connecticut
Drivers using Insurify have found quotes as cheap as $57/mo for liability only and $90/mo for full coverage in Connecticut.
*Quotes generated for Insurify users within the last 10 days. Last updated on October 29, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 29, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on October 29, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 29, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Gap insurance vs. full coverage
Connecticut requires drivers to purchase liability insurance. This pays for losses a policyholder causes to others. The Connecticut Insurance Department also identifies other kinds of protection that are part of a full-coverage auto insurance policy, including:
Uninsured/underinsured motorist coverage
Uninsured/underinsured motorist coverage pays for losses a driver without sufficient insurance causes in an accident.
Medical payments coverage
Medical payments coverage pays for medical bills if you or your passengers are hurt in an accident as well as lost wages in some circumstances.
Collision coverage
Collision coverage pays for damage to your vehicle after striking another vehicle, object, or animal.
Comprehensive coverage
Comprehensive coverage pays for vehicle damage not resulting from a crash.[3]
Gap coverage isn’t automatically included in a full-coverage policy because drivers who don’t have a car loan or lease don’t need this protection. But anyone who could potentially owe more than their car’s value will benefit from having it so they don’t face thousands of dollars in out-of-pocket costs when an insurer won’t cover their full loan amount.
Who needs gap insurance in Connecticut?
Connecticut only requires liability insurance. While it doesn’t require gap insurance, buying this coverage has definite benefits if there’s a chance you may owe more than your car is worth at any point.
It may be especially important to buy gap insurance in the following circumstances:
You make a down payment of less than 20% when financing a new vehicle.
You take out an auto loan with a loan term of more than 60 months.
The car you buy depreciates faster than a typical vehicle.
You rolled some of your old car loan balance into your new auto loan.
You’re leasing your car and need lease gap coverage.
A car insurance agent or auto loan lender in Connecticut can help you determine whether you need gap insurance and can help you understand all the insurance products available to you.
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How to buy gap insurance in Connecticut
You can buy gap insurance from one of several different sources:
An auto insurer that provides other coverage: Gap insurance is a common add-on to a full-coverage policy.
An auto loan lender: Lenders also refer to this as loan forgiveness coverage.
A stand-alone policy: Some companies provide a separate gap insurance policy that’s not part of other auto coverage, although this isn’t as common.
Gap insurance in Connecticut FAQs
If you want to know more about gap insurance in the Nutmeg State, this additional information may help as you research your coverage options.
Does Connecticut require gap insurance?
No. Connecticut doesn’t require gap insurance. But if you have a car loan or lease, you may wish to purchase this coverage.
Who should get gap insurance in Connecticut?
If you might owe more on your loan or lease than your vehicle is worth, you should get gap insurance in Connecticut. Without this coverage, the insurer pays only the vehicle’s actual cash value when it’s damaged beyond repair or stolen. If that’s not enough to repay the full car loan balance, you’d be left to pay out of pocket for any remaining money due.
What are the pros and cons of gap insurance?
The biggest benefit of gap insurance is that you won’t have to pay the remaining loan balance beyond what your insurer pays for a vehicle after a covered loss. The biggest con is that you’ll have to pay additional premiums for gap insurance, which makes auto insurance costlier. But it typically only costs an additional $20 per year.
Is gap insurance worth it?
Gap insurance is worth it if you may owe more on your financed or leased vehicle than it’s worth. This protection could save you from having to pay thousands of dollars out of pocket to fully repay a loan for a vehicle worth less than the outstanding loan balance.
What does gap insurance cover in Connecticut?
Gap insurance pays the difference between your car loan balance and the actual cash value of the vehicle if you total it or someone steals it. Without this coverage, you’d be on the hook for paying any outstanding loan balance for a car you can no longer drive.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Related articles
More cities in Connecticut
Sources
- Consumer Financial Protection Bureau. "What is Guaranteed Auto Protection (GAP) insurance?."
- Insurance Information Institute. "What is gap insurance?."
- Connecticut Insurance Department. "Auto Insurance."
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Christy Rakoczy
Christy Rakoczy has been a personal finance and insurance writer for over a decade. Her work has been published on USA Today, MSN, Yahoo Finance, Credit Karma, Forbes Advisor, and more. Christy has a JD from UCLA School of Law and previously worked as a data analyst for Blue Cross and as a paralegal studies instructor before transitioning to writing full time.
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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