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Gap Insurance in Delaware
Gap insurance is a smart auto insurance option for Delaware drivers who are financing their vehicles. It’s a cheap way to protect yourself from high out-of-pocket costs in the event of a total loss accident or theft. Compare gap insurance quotes from multiple companies through Insurify, an AI-powered comparison tool.
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Best Companies for Gap Insurance in Delaware
Comparing quotes from different auto insurance companies is important because average monthly insurance costs for leased vehicles can go as high as $433 and as low as $274, amounting to a whopping $1,908 annual difference. You can use the table below to compare average monthly costs from some of the best car insurance companies in Delaware.
|Company||Average Monthly Cost for Leased Cars in Delaware|
|Midvale Home & Auto||$277|
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What is gap insurance?
Gap insurance is an optional auto insurance policy that Delaware drivers can add to their car insurance coverage to protect themselves from having an outstanding loan balance on a vehicle that was totaled in a car accident or stolen.
So, how does gap insurance work? After you purchase a new vehicle, its value goes down anywhere from 20 to 30 percent in just the first year. As a result of this depreciation, you may end up with negative equity and owe a higher amount on your car than its actual cash value. For example, you may owe $10,000 on a vehicle that’s worth just $5,000.
If your car is totaled in a car accident or stolen, your car insurance policy will reimburse you for your vehicle’s actual cash value (ACV)—not for your outstanding auto loan balance. As a result, you may end up having to continue paying off a vehicle you no longer drive. For example, if your reimbursement is $5,000 but you owe $10,000 on your car, you will be $5,000 in debt.
Gap insurance closes this gap between what you owe on your vehicle and its actual cash value so you don’t end up with a frustrating financial obligation after your car is gone.
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Who should buy gap insurance in Delaware?
Generally speaking, you should always get gap insurance if you are financing your vehicle, and some lenders may even require you to get either a stand-alone gap insurance policy or a full-coverage policy with gap insurance coverage as an add-on.
However, there is an exception to this. If you make a large down payment of more than 20 percent, you have a lower chance of ending up with negative equity—owing more on your vehicle than it’s actually worth—so you may not need gap insurance. However, you would still be taking a potential risk.
The following factors increase your likelihood of having negative equity:
- You made a low down payment on your car. If your down payment is lower than 20 percent, then your vehicle will depreciate much faster, increasing your chances of being “upside-down” on your car.
- It is going to take you over 60 months to pay off your auto loan. If you have a long-term leasing or loan agreement, you have a higher chance of ending up with negative equity because, on average, cars depreciate more than 60 percent over the course of five years.
- You often drive long distances. Regularly covering a lot of mileage makes your car depreciate faster.
- You drive a luxury vehicle. Upscale vehicles, such as sports cars, depreciate much faster than regular vehicle models—an important factor to consider if you’re thinking about financing one.
Delaware Gap Insurance Laws
Delaware state laws do not require drivers to carry gap insurance. To drive in Delaware, you only need to have the minimum liability insurance (bodily injury liability and property damage liability), underinsured/uninsured motorist coverage, and personal injury protection (PIP).
However, some lenders may require you to purchase gap insurance either as a stand-alone policy or as an add-on to your comprehensive coverage and collision coverage. Shopping for gap insurance doesn’t have to break the bank. Insurify makes it easy to get 10+ cheap quotes from the best Delaware car insurance companies and find the best deal in just a few minutes.
How much gap insurance do I need in Delaware?
How much gap insurance you need depends on how fast your motor vehicle is projected to depreciate, how much you owe on it, and your personal preferences and budget.
Generally speaking, Insurify recommends calculating the difference between what you owe on your vehicle and how much you anticipate it to be worth over the course of the next few years and getting enough gap insurance to cover that difference.
See More: How Much Car Insurance Do I Need?
How Gap Insurance Works in Delaware
Gap insurance covers negative equity—the difference between how much you owe on your vehicle and its actual cash value—only in the event of a total loss accident or theft. If your car sustains damages during a car accident but it’s not totaled (damaged beyond repair), then you would need to use your collision and comprehensive coverage.
Gap insurance also doesn’t cover medical expenses or lost wages that happen as a result of a car accident. It’s important to understand that gap insurance only applies to your vehicle. And gap insurance works regardless of fault.
How Much Gap Insurance Costs in Delaware
How much is gap insurance in Delaware?
The cost of gap insurance in Delaware will largely depend on whether you buy gap insurance from your car dealership or from your insurance provider. If you buy gap insurance from a dealership, you can expect to pay about $700 to $800 annually, whereas adding gap insurance onto an existing policy will likely cost around $5 per month, or $20 per year.
On average, you can expect to pay $350 in monthly insurance premiums for a Delaware auto insurance policy if you have a leased vehicle. Lenders often require drivers to purchase more coverage than the minimum insurance coverage (liability coverage, underinsured/uninsured motorist, and PIP).
There are multiple ways you can get gap insurance coverage in Delaware:
- Car dealership: Your car dealer may try to convince you to buy gap insurance from them, but it’s likely to be one of the most expensive options and may cost you a flat fee of $700–$800+.
- Financial institution: Banks and credit unions in your area may offer gap insurance policies, and you can expect a one-time fee of $200–$700+.
- Auto insurance company as a stand-alone policy: Even though gap insurance is an optional add-on, you can purchase it as a stand-alone policy from an insurance agent and combine it with your minimum coverage. You can expect a flat fee of $200–$300+.
- As an add-on to your full coverage: If you already have comprehensive and collision coverage, you can get gap insurance as an add-on. This is the cheapest option that can raise your annual insurance premiums by as little as just $20.
How to Buy Gap Insurance in Delaware
The best way to get gap insurance is either as an add-on to your full coverage or as a stand-alone policy from an auto insurance company. Whether you’re looking for comprehensive and collision coverage with gap insurance as an add-on or for a stand-alone gap policy, Insurify makes the shopping process easy and helps you find the cheapest policy in under five minutes.
You need to get at least four quotes from different car insurance companies in Delaware to find an auto insurance policy with the best coverage limits, deductibles, and insurance premiums. It’s especially important to do this if you have any negative factors driving your car insurance costs up, such as DUIs on your driving record or a poor credit score.
Requesting insurance information and quotes from different companies is a long and tedious process. You have to answer the same questions over and over online or over the phone each time you request a quote from a different company and then manually compare them to find the best option for you.
Instead, spend just five minutes on Insurify’s trusted site answering a few questions about yourself, your vehicle, and your coverage preferences only once, and instantly get access to 10+ real and accurate quotes from the best car insurance companies in your area to easily compare all your options in one place.
Plus, Insurify gives you personalized suggestions on how to combine your car insurance with other insurance policies, such as your homeowners insurance, to maximize your savings. On average, Insurify users save $489 per year!
Frequently Asked Questions: Gap Insurance in Delaware
There is no insurance requirement to carry gap insurance in Delaware. However, your lending institution may require you to either get a stand-alone gap insurance policy or full coverage with gap insurance as an add-on. Use Insurify to find the best gap insurance coverage at the cheapest rate in Delaware.
It may be possible to get a partial gap insurance refund if you pay your insurance premiums in advance and pay off your vehicle early. However, this depends on your auto insurance provider and its policies. To find a car insurance company that helps your maximize your savings, use Insurify.
Certain factors, such as being young and only having your driver’s license for a limited period of time, can drive your car insurance costs up. However, getting quotes from multiple car insurance providers maximizes your chances of finding cheap gap insurance coverage. Use Insurify to get instant access to 10+ real and accurate quotes today.
How Delaware Drivers Measure Up
While most drivers know that car insurance quotes are determined in part by your personal driving history, many may be unaware that rates are also impacted by the average risk of the drivers around you as well. Check out Insurify's latest analysis of driving records in Delaware below:
Drawing from an internal database of over 4 million car insurance applications, the research team at Insurify analyzes patterns in car ownership and driver behavior - including how Delaware drivers measure up to their fellow motorists across the United States in areas including speeding, DUIs, and more.
Insurify Insights publishes data-driven articles, trend analyses, and national rankings each week on all factors related to cars and those who drive them.
Most Popular Car in Delaware
State with the Most Speeding Tickets Rank
State with the Moving Violations Rank
State with the Most DUIs Rank
State with the most Suspended Licenses
While car accidents are a sadly unavoidable feature of time spent on the road, rates of accidents do vary from city to city and from state to state. Delaware is the #32 state in the country for drivers with an at-fault accident on their driving record.
- Rank among states: #32
- Percent of drivers in Delaware with an accident: 9.66%
- Percent of all U.S. drivers with an at-fault accident: 9.56%
- Drivers in DE who have a current at-fault accident on their driving record pay 23.6% more on average than drivers with a clean record.
Exceeding the speed limit can endanger others and have a serious impact on your insurance costs. Delaware is the #22 state in the country for drivers with a speeding ticket on record.
- Rank among states: #22
- Percent of drivers in Delaware with a speeding ticket: 10.67%
- Percent of all U.S. drivers with a speeding ticket: 9.22%
- Drivers in DE with a speeding ticket in their driving history pay on average 19.48% more than drivers with a clean record.
While driving while intoxicated is never acceptable, it’s a more common offense than many assume. Delaware is the #47 state in the country for drivers with a prior drunk driving conviction.
- Rank among states: #47
- Percent of drivers in Delaware with a DUI: 1.24%
- Percent of all U.S. drivers with a DUI: 1.65%
- Drivers in DE with a DUI in their driving history pay on average 4.87% more than drivers with a clean record.
The Insurify team classifies rude drivers as those who commit one or more of the following driving offenses: failure to yield or failure to stop, improper backing, passing where prohibited, tailgating, street racing, or hit-and-run. Delaware is the #16 state in the country for drivers with a rude driving violation on record.
- Rank among states: #16
- Percent of drivers in Delaware with a rude driving violation: 2.12%
- Percent of all U.S. drivers with a rude driving violation: 1.68%
- Drivers in DE with a rude driving violation in their driving history pay on average 11.24% more than drivers with a clean record.
Reckless driving refers to a specific traffic violation: when drivers willfully act dangerously in spite of the risks they’re imposing on both themselves and others. Delaware is the #13 state in the country for drivers with a reckless driving offense on record.
- Rank among states: #13
- Percent of drivers in Delaware with a reckless driving offense: 0.18%
- Percent of all U.S. drivers with a reckless driving offense: 0.0949%
Failing to yield the right of way isn’t just frustrating for other drivers; it’s dangerous, too. Delaware is the #38 state in the country for drivers with a failure to yield violation on record.
- Rank among states: #38
- Percent of drivers in Delaware with a failure to yield violation: 0.28%
- Percent of all U.S. drivers with a failure to yield violation: 0.36%
- Drivers in DE with a failure to yield violation in their driving history pay on average 12.73% more than drivers with a clean record
Having a squeaky-clean driving record is an impressive accomplishment. Some states have consistently safer drivers than others; Delaware is the #21 state in the country for drivers with a clean record.
- Rank among states: #21
- Percent of drivers in Delaware with a clean record: 80.87%
- Percent of all U.S. drivers with a clean record: 82.17%
As auto manufacturers increasingly turn towards producing greener car models, more and more motorists are embracing hybrids and EV’s. Delaware drivers rank #34 in hybrid and electric vehicle ownership across all fifty states.
- Rank among states: #34
- Percent of drivers in Delaware with a hybrid/electric vehicle: 0.68%
- Percent of all U.S. drivers with a hybrid/electric vehicle: 2.4%
Insurify's team of data scientists and content specialists presents Insurify Insights, a series of automotive, home, and health studies focusing on the topics that impact us all. through expert analysis of over 4 million car insurance applications and an array of top data sources, the Insurify Insights team produces new data-driven articles, trend analyses, regional superlatives, and national rankings every week. See Insurify Insights as featured in Forbes, Fox News, USA Today, NPR, and more.
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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.