Gap Insurance in Florida (2024)
Florida doesn’t require gap insurance, but it’s a good idea to buy it if you have a lease or car loan.
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Written byElizabeth Rivelli
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Elizabeth Rivelli
5+ years writing insurance and personal finance topics
Auto, home, health, and life insurance expertise
Elizabeth has extensive insurance industry experience, having written for Insureon, Rate Retriever, and Insurify. She’s also finance and insurance editor for Car and Driver.
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Edited byKatie Powers
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Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Updated November 20, 2024
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Table of contents
When you lease or finance a vehicle in Florida, getting gap insurance can be beneficial. If you experience a total loss, like a car accident or a flood destroying your car, gap insurance pays the difference between your car’s value before the loss and the remaining amount you owe on the loan or lease.
The national average for full coverage is $248 per month in Florida. Gap insurance typically costs an additional $2 per month. Florida insurance laws don’t require gap insurance, but it can provide financial protection and give you some peace of mind.
Quick Facts
You can typically purchase gap insurance from your lender or insurance company.
Gap insurance covers the difference between your car’s actual cash value (ACV) and your auto loan balance in a covered total loss.
Adding gap insurance to your insurance policy costs around $20 per year, according to the Insurance Information Institute.[1]
How gap insurance works
Gap insurance is short for “guaranteed asset protection.” It’s an optional auto insurance policy that applies when your insurer declares your vehicle a total loss in a covered claim like an accident or theft. It covers the difference between the car’s actual cash value before the loss and what you still owe on the loan or lease.
Not all drivers need gap insurance coverage. It’s only necessary if you have a lease or finance your vehicle with an auto loan. Some lenders require gap insurance, particularly if you have a lease.
Because most lenders and leasing companies require drivers to purchase full-coverage car insurance, which includes collision and comprehensive coverages, you’ll first file a claim with your auto insurer. After you receive the initial claim settlement from your insurer, you’ll need to provide your gap insurance company with a statement verifying the car’s actual cash value (ACV) and how much you received for the loss.
Keep in Mind
Gap coverage doesn’t pay you. It pays off your loan or lease balance.
What gap insurance covers in Florida
Gap insurance in Florida covers the negative equity in your vehicle if your insurer declares it a total loss. Gap insurance doesn’t provide any protection for you, your vehicle, or anyone else’s vehicle. The only time gap insurance applies is when you total your car and owe more on the loan or lease than you receive in an insurance claim.
For example, imagine that a flood from a hurricane totals your car. The insurance company determines that your vehicle is worth $5,000, but you still owe $6,000 on your auto loan. In this case, you would put the $5,000 settlement toward paying off your loan, and your gap insurance would cover the $1,000 difference.
Remember, lease agreements or loan contracts don’t terminate if you total your car. You’re still responsible for paying the lender what you owe, even if the car is a total loss. Without gap insurance, you’d have to pay the difference out of pocket if you owed more than what you received in an insurance settlement.
It’s also important to know that most gap insurers cap the amount of money they’ll pay. For instance, Progressive will pay up to 25% of your vehicle’s value, though this amount can vary by state, and Allstate pays up to $50,000. So, if your totaled car were worth $5,000, Progressive would only pay a maximum of $1,250.
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Best gap insurance companies in Florida
Most national insurance companies offer gap insurance as an endorsement on your existing car insurance policy. Here are some of the best car insurance companies for gap insurance in Florida:
Travelers
| User Reviews | 4.7 |
|---|---|
| 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. | $140/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. | $173/mo |
4.7
Best choiceBased on 757 verified guest reviews and ratings
How drivers feel about Travelers
Drivers appreciate the lowest prices, excellent service, and responsive call centers but dislike the rising premiums and poor claims handling.
AI-generated from the text of verified reviews collected by Insurify
Best For
Numerous discounts
Gap insurance
Rideshare coverage
How drivers feel about Travelers
Drivers appreciate the lowest prices, excellent service, and responsive call centers but dislike the rising premiums and poor claims handling.
AI-generated from the text of verified reviews collected by Insurify
Best For
Numerous discounts
Gap insurance
Rideshare coverage
Reviews (389)
Nancy
November 18, 2024
Verified Review
Checking for Better Rate
Really good.
Jim
November 12, 2024
Verified Review
Typical
They were fair but within a month, they raised their premium by over $50.
Kenneth
November 5, 2024
Verified Review
Excellent
Excellent
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
818NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.94A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
Travelers sells a gap insurance endorsement that drivers can add to their car insurance policies. The company also offers endorsements like accident forgiveness, rideshare insurance, and new-car replacement coverage.
Pros
Accident forgiveness available
Robust insurance 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
Allstate
| User Reviews | 4.0 |
|---|---|
| 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. | 8.9 /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. | $117/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. | $145/mo |
4.0
Best choiceBased on 5647 verified guest reviews and ratings
How drivers feel about Allstate
Drivers appreciate the initial pricing and overall service but dislike the frequent rate increases and misleading pricing tactics.
AI-generated from the text of verified reviews collected by Insurify
Best For
Accident forgiveness
Wide availability
Cheap rates
How drivers feel about Allstate
Drivers appreciate the initial pricing and overall service but dislike the frequent rate increases and misleading pricing tactics.
AI-generated from the text of verified reviews collected by Insurify
Best For
Accident forgiveness
Wide availability
Cheap rates
Reviews (3,072)
Lyudmila
November 14, 2024
Verified Review
No Discount for Seniors
The service is mediocre.
Latonya
November 12, 2024
Verified Review
Not Recommended
I would not recommend Allstate. They did not support me when I needed them most. They didn't believe me or the other party when we said my first accident wasn't my fault. My agent incorrectly reported to the DMV that my insurance had lapsed when it hadn't. They increased my insurance rates four to five times within two years. A representative from my agent's office called me to sell renters insurance, promising a lower monthly rate, which turned out to be false. After I was involved in a hit and run, instead of ensuring my wellbeing, they raised my insurance again to almost $800/month. I find Allstate to be a disappointing car insurance company and I wouldn't recommend them to anyone.
Linda
November 12, 2024
Verified Review
The office in St. Petersburg, FL has significantly changed. I have been with All State, using the same office, for years. Recently, new management has taken over and the staff has become less courteous and often fail to follow through on their commitments. It's even more challenging when your call gets redirected to an office in another state.
The office in St. Petersburg, FL has significantly changed. I have been with All State, using the same office, for years. Recently, new management has taken over and the staff has become less courteous and often fail to follow through on their commitments. It's even more challenging when your call gets redirected to an office in another state.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
849NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.94A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A-Why we picked this company
Allstate offers robust gap insurance policies with a few perks that other insurers don’t offer. Allstate’s gap insurance will also cover your deductible (up to $1,000), and the company will waive up to $50,000 of your loan or lease balance if it declares your car a total loss. But you must add gap insurance to your Allstate policy when you initially lease or finance the car.
Pros
Well-established with superior ratings from AM Best
Pay-per-mile option available
Cons
Low customer satisfaction
Rates are merely average compared to other insurers
Progressive
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 819 |
|---|---|
| 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. | 8.4 /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. | $182/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. | $267/mo |
How drivers feel about Progressive
Drivers appreciate the professional service and accident forgiveness but dislike the high prices and frequent rate increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Easy buying process
Telematics program
How drivers feel about Progressive
Drivers appreciate the professional service and accident forgiveness but dislike the high prices and frequent rate increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Easy buying process
Telematics program
Reviews (5,794)
Steven
November 19, 2024
Verified Review
I'll Stay with Them, No One Can Beat Them!
They are the cheapest I have found!
Lesley
November 16, 2024
Verified Review
Disappointed
If you want to use the auto pay feature, you have to do snapshot.
Joyce
November 14, 2024
Verified Review
Unfair Pricing
They initially offered a low price, but then added $100 after three months without any notice. I tried to contact them about it, but they either did not answer the phone or responded in a hostile manner. As a result, I had to cancel and find coverage elsewhere.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
819NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.82A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+Why we picked this company
Progressive’s gap insurance will cover your remaining loan balance at a maximum of 25% of your car’s value. Overall, Progressive is one of the best car insurance companies in Florida, offering many endorsements and discounts for policy savings. Progressive also offers online tools that can help you get the cheapest premium for your situation.
Pros
Rewards for good drivers
Numerous coverage options and discounts available
Cons
Higher-than-expected number of complaints with the National Association of Insurance Commissioners (NAIC)
Below-average J.D. Power customer satisfaction ratings
Liberty Mutual
| User Reviews | 3.7 |
|---|---|
| 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. | 7.7 /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. | $159/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. | $258/mo |
3.7
A solid optionBased on 2671 verified guest reviews and ratings
How drivers feel about Liberty Mutual
Drivers appreciate the initial low prices, quick claims handling, and easy account access but dislike the significant price increases over time.
AI-generated from the text of verified reviews collected by Insurify
Best For
Numerous discounts
New and financed vehicles
Accident forgiveness
How drivers feel about Liberty Mutual
Drivers appreciate the initial low prices, quick claims handling, and easy account access but dislike the significant price increases over time.
AI-generated from the text of verified reviews collected by Insurify
Best For
Numerous discounts
New and financed vehicles
Accident forgiveness
Reviews (1,559)
Michael
November 19, 2024
Verified Review
Go Elsewhere
The customer service is poor. It's difficult to speak to a human as it's overly automated.
Deborah
November 12, 2024
Verified Review
Examine Every Inch of Your Policy
I didn't realize I didn't have accident forgiveness until my daughter had an accident. They tripled the cost of my policy.
Lee
November 12, 2024
Verified Review
Ugh!
The rates increase every year. I'm an excellent driver and I've never made a claim.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
819NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
3.95A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
AWhy we picked this company
Liberty Mutual offers gap insurance to current customers. To get gap coverage, you must add the endorsement at the same time that you insure your vehicle, and you must be the car’s first owner. In addition to gap insurance, Liberty Mutual sells roadside assistance, teacher’s insurance, new-car replacement coverage, OEM parts coverage, and more.
Pros
Wide range of available discounts
Accident forgiveness available
Available in all 50 states and D.C.
Cons
Many negative reviews and customer complaints
Premiums are relatively high compared to industry average
Low customer satisfaction scores from J.D. Power
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 this information, Insurify is able to offer drivers insight into how companies price their car insurance premiums. The data included on this page represent averages across driver ages, genders, credit scores, and driver profiles for Florida drivers.
Gap insurance vs. full coverage
In Florida, a full-coverage car insurance policy typically includes collision coverage, comprehensive coverage, liability insurance, and medical payments insurance. Full-coverage insurance doesn’t include gap insurance. You have to add gap insurance as an endorsement or purchase it as a separate policy.
If you lease or finance your car, the dealer will often require full-coverage insurance.[2] Florida gap insurance can be a beneficial addition to a full-coverage insurance policy. Although a full-coverage policy will provide a settlement to replace your car after a total loss, it won’t cover the remaining balance on your loan.
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Learn More: Medical Payments Coverage on Car Insurance: What Is It?
Who needs gap insurance in Florida?
Florida insurance laws don’t require gap insurance. But it can be beneficial in various situations:
You lease your vehicle (sometimes required).
You have an auto loan and make a down payment of less than 20%.
Your auto loan term is five years or longer.
Your car depreciates more quickly than other vehicles.
Gap insurance isn’t necessary if you own your vehicle outright. And even if you need gap insurance now, you should be able to drop the coverage eventually. For instance, as you get closer to paying off your vehicle and have positive equity, you no longer need gap insurance.
If you’re thinking about buying gap insurance, consult a car insurance agent or an auto lender to get a quote.
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How to buy gap insurance in Florida
You can buy Florida gap insurance in two main ways. You can purchase a policy either through an insurance company or through your lender.
Many drivers get gap insurance by adding an endorsement to their full-coverage car insurance policy. You can usually add a gap insurance endorsement any time before your loan is paid off or your lease is up. But some insurers only allow you to add gap insurance during a certain time frame.
If you buy Florida gap insurance through a dealership or lender, it’s usually sold as a stand-alone policy. Sometimes, the lender rolls the cost into your monthly lease or loan payments.
Keep in Mind
If you buy gap insurance through a dealership or lender, you might only be able to get coverage when you initially sign your agreement. Plus, you may end up paying interest on the insurance payments.
Cheapest recent rates in Florida
Drivers in and around Florida have found policies from Direct Auto, Mercury, First Acceptance, and more, through Insurify in the last few days.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 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 November 20, 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 November 20, 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 November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Florida gap insurance FAQs
If you’re thinking about getting gap insurance in Florida, check out common questions other drivers ask for more information. You can also read Insurify’s guide on how to get more out of a total loss settlement.
Does Florida require gap insurance?
No. Florida’s minimum insurance requirements don’t include gap insurance.[3]
How much is gap insurance in Florida?
The cost of gap insurance in Florida depends on several factors, like your insurance company and the value of your vehicle. The Insurance Information Institute estimates that adding gap insurance to a policy costs $20 per year. You can get a quote from your insurance company or dealership to see how much you could pay for gap coverage.
Does gap insurance cover hurricane damage?
Gap insurance doesn’t cover hurricane damage. But if a hurricane or flooding totals your vehicle, gap insurance would cover the difference between your car’s value and what you owe on it.
Why is gap insurance a good idea?
Gap insurance is a good idea because it provides financial protection when you lease or finance a car. If you total your car or someone steals it, you still have to repay your lender. And without gap insurance, you’re responsible for the difference between the total loss settlement and the remainder of the auto loan.
Related articles
More cities in Florida
Sources
- Insurance Information Institute. "What is gap insurance?."
- Insurance Information Institute. "Auto insurance basics—understanding your coverage."
- Florida Department of Highway Safety and Motor Vehicles. "Florida Insurance Requirements."
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Elizabeth Rivelli
Elizabeth Rivelli is a freelance writer covering insurance and personal finance. She has extensive knowledge of various insurance lines, including property and casualty, health, and life insurance. Her byline has been featured in dozens of publications, including Investopedia, Forbes, Bankrate, NextAdvisor, and Insurance.com.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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