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.

Christy Rakoczy
Written byChristy Rakoczy
Christy Rakoczy
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.

Danny Smith
Edited byDanny Smith
Photo of an Insurify author
Danny Smith
  • Licensed auto and home insurance agent

  • 4+ years in content creation and marketing

As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.

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Updated April 15, 2024

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Gap insurance protects drivers with car loans and leases. If your vehicle is stolen or damaged beyond repair, it’s declared a total loss, and your insurance pays the fair market 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 should buy gap coverage, although it’s generally not required. This is especially likely to be an issue for 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.[2]

Quick Facts
  • A driver who makes an insurance claim on a stolen or totaled car will receive the vehicle’s fair market value.

  • Gap insurance covers the gap between the amount due to 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.

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What is gap insurance and how does it work?

Gap insurance is short for “guaranteed asset protection” insurance. Insurers offer it as an add-on to collision and comprehensive insurance policies. These pay a Connecticut policyholder when they damage their car in a covered incident, such as a collision or theft.

Comprehensive and collision insurance pay to repair your vehicle. However, if a car is damaged too badly or stolen and not recovered, the insurer only pays the car’s market value. Since many drivers owe more than their vehicle is worth, this could mean they receive less than the full amount of their outstanding auto loan balance.

Without gap insurance, a driver would have to pay the remaining balance out of their pocket for a car they no longer own.

What gap insurance covers in Connecticut

Gap insurance only covers the difference between the amount an insurer pays and the amount owed to an auto lender or lease provider when a car is totaled or stolen and not recovered.

The table below shows how a gap insurance policy could protect against loss.

 Without Gap InsuranceWith Gap Insurance
Vehicle actual cash value$25,000$25,000
Outstanding loan amount$30,000$30,000
Insurance deductible$1,000$1,000
Insurance payout (vehicle value minus deductible)$24,000$24,000
Remaining loan balance after insurance payout$6,000$6,000
How much gap insurance covers$0Up to $6,000 of the remaining loan balance
Out-of-pocket costs$7,000$1,000
Important Information

It’s important to note that gap insurance doesn’t cover an auto insurance deductible. Even with gap insurance, a driver has to pay their deductible amount when they make a covered claim.

Gap insurance vs. full coverage

Connecticut requires drivers to purchase liability insurance coverage. 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:

  • illustration card https://a.storyblok.com/f/162273/x/5285c4cd74/uninsured-or-underinsured-motorist-coverage.svg

    Uninsured/underinsured motorist coverage

    Uninsured/underinsured motorist coverage pays for losses a driver without sufficient insurance causes to the policyholder.

  • illustration card https://a.storyblok.com/f/162273/x/4c9753bdbe/medical-payments.svg

    Medical payments coverage

    Medical payments coverage pays for medical bills for a policyholder or family members hurt in an accident as well as to cover lost wages in some circumstances.

  • illustration card https://a.storyblok.com/f/162273/x/169fdfde11/liability-coverage.svg

    Collision coverage

    Collision coverage pays for damage to the policyholder’s vehicle after striking another vehicle, object, or animal.

  • illustration card https://a.storyblok.com/f/162273/x/665da91bf7/comprehensive-coverage.svg

    Comprehensive coverage

    Comprehensive coverage pays for vehicle damage not resulting from a crash.[3]

Gap coverage isn’t necessarily a part of 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, there are definite benefits of buying this coverage if there’s a chance a driver may owe more than their car is worth at any point.[3]

It may be especially important for drivers 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.[2]

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.

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.

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

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. Gap insurance can be added to collision and comprehensive coverage, and Travelers offers very affordable rates for these protections in Connecticut.

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.3
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
829
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.
$118/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.
$172/mo

Travelers has been in business for more than 165 years. Today, the company sells auto insurance, homeowners, renters, flood, pet, and other types of insurance. In addition to liability and full-coverage car insurance, Travelers offers gap insurance, rental car reimbursement, roadside assistance, rideshare insurance, new car replacement coverage, and more. Policyholders can save with a number of discounts, including for bundling multiple policies, safe driving, paying in full, student discounts, and more. Travelers has fewer complaints than expected with the National Association of Insurance Commissioner’s Consumer Complaints Index. A.M. Best gives the company an A++ for financial strength.

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 our Travelers review
Willard - April 13, 2024
Verified

No

Too expensive.

Jeffrey - March 23, 2024
Verified

Excellent

Fast.

Lisa - March 14, 2024
Verified

Long-time customer with a slight rate reduction

The premium is too much for what I need.

Nationwide

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.[4]

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.1
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
815
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.
$129/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.
$185/mo

In business since 1925, Nationwide is one of the largest insurers, and sells car, homeowners, life insurance, umbrella insurance, and more. In addition to liability, collision and comprehensive, Nationwide provides optional coverages such as towing and labor, rental car, and gap. The company also offers accident forgiveness, and a vanishing deductible that lowers your deductible for each year you drive safely. Nationwide has an A+ rating from A.M. Best for financial stability, and an only slightly higher-than-expected number of customer complaints in the National Association of Insurance Commissioner’s Consumer Complaints Index.

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 our Nationwide review
Antoinette - April 8, 2024
Verified

Nationwide is not on your side

My rate doubled for no apparent reason. I have no tickets and no accidents.

Janet - March 30, 2024
Verified

Expensive Insurance Company

They are very expensive and not helpful. They don't offer storage insurance and there are no discounts.

Jeri - March 30, 2024
Verified

Don't Choose Nationwide

I have been with this company for 30 years, always paying on time, with no tickets or accidents, and very low mileage. However, this time my rates went up by $500 without a reasonable explanation. Age discrimination was implied.

Amica

Amica offers gap insurance to Connecticut drivers. The insurer provides low-priced coverage 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.[5]

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
3.7
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
862
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.
$289/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.
$483/mo

Amica Mutual Insurance Company launched in 1907, making it the oldest mutual insurer offering car insurance in the U.S. Amica offers auto, homeowners, personal excess liability, and marine insurance. As a mutual company, Amica distributes dividends to policyholders, rather than shareholders. The company has A+ ratings from A.M. Best for financial stability and credit, and was the highest-ranked insurer for customer satisfaction in New England according to J.D. Power. Amica offers numerous discounts to help drivers save, and flexible coverage options, including gap insurance, roadside assistance, and rental reimbursement.

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 our Amica review
John - March 4, 2024
Verified

Average

The service is good, but the premiums are higher.

Janie - January 28, 2024
Verified

Rates Always Going Up

I've been a customer for years, yet every year my rates are raised! I'm paying double what other companies charge!!

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How Insurify rates car insurance companies

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.

Gap insurance in Connecticut FAQs

Still want to know more about gap insurance in Connecticut? Here are the answers to drivers’ questions about this kind of auto insurance in the Nutmeg State.

  • Does Connecticut require gap insurance?

    Connecticut doesn’t require gap insurance. However, drivers with car loans or leases may wish to purchase this coverage that pays the difference between their car loan balance and the fair market value of the vehicle after a covered loss.

  • Who should get gap insurance in Connecticut?

    Drivers who may owe more on their loan or lease than their vehicle is worth should get gap insurance in Connecticut. Without this coverage, the insurer pays only the vehicle’s fair market value when it’s damaged beyond repair or stolen. If that’s not enough to repay the full car loan balance, the driver would 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 a driver won’t have to personally pay the remaining loan balance beyond what their insurer pays for a vehicle after a covered loss. The biggest con is that a driver will have to pay additional premiums for gap insurance, which makes auto insurance costlier.

  • Is gap insurance worth it?

    Gap insurance is worth it for drivers who may owe more than their financed or leased vehicle is worth. This protection could save a driver in Connecticut 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.

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
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • 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.

Sources

  1. Consumer Financial Protection Bureau. "What is Guaranteed Auto Protection (GAP) insurance?."
  2. III. "What is gap insurance?."
  3. Connecticut Insurance Department. "Auto Insurance."
  4. Apple App Store. "Nationwide Mobile."
  5. Jdpower.com. "2023 U.S. Auto Insurance Study."
Christy Rakoczy
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.

Danny Smith
Edited byDanny Smith
Photo of an Insurify author
Danny Smith
  • Licensed auto and home insurance agent

  • 4+ years in content creation and marketing

As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.

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