Gap Insurance in Florida (2024)

Travelers, Progressive, and Allstate provide some of the best gap insurance in Florida. Florida doesn’t require gap insurance, but it’s a good idea to buy it if you have a lease or car loan.

Elizabeth Rivelli
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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Courtney Mikulski
Courtney MikulskiSenior Editor, Auto
  • 3+ years producing insurance and personal finance content

  • Main architect of the Insurify Quality Score

Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.

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Updated July 10, 2024

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When you lease or finance a vehicle in Florida, getting gap insurance can be beneficial. If you experience a total loss, like an accident or 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.[1] 

Florida insurance laws don’t require gap insurance, but the coverage 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]

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What is gap insurance, and how does it work?

Gap insurance is short for “guaranteed asset protection.” It’s an optional car 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. 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.[1]

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 does gap insurance cover 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 your car is totaled and you owe more on the loan or lease than what you receive in an insurance claim.

For example, imagine that your car gets totaled in a flood following a hurricane. 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 your car gets totaled. 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.

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.

Learn More: Medical Payments Coverage on Car Insurance: What Is It?

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. However, it can be beneficial in various situations:[1]

  • 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.

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.[1]

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. However, 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 standalone policy. Sometimes, the cost is rolled 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.

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How much does gap insurance cost in Florida?

The cost of gap insurance in Florida depends on various factors, including your vehicle type, your vehicle’s value, and where you get coverage. Gap insurance from a car insurance company is usually cheaper than from a dealership or lender.[1]

In general, gap insurance is very affordable. Adding a gap insurance endorsement to a full-coverage insurance policy raises your premium by about $20 per year, according to the Insurance Information Institute.[1] However, the cost can vary by insurance company.

To better understand the cost of gap insurance in Florida, here are quotes for a leased vehicle with full coverage and gap insurance from some of the biggest insurers.

Insurance CompanyEstimated Monthly Quote
Progressive$300
Liberty Mutual$382
Travelers$291
Allstate$311
Estimated quotes obtained directly from insurers based on driver profile of a Miami-based 30-year-old female driver of a 2021 Honda Civic.

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 gap insurance companies in Florida:

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User Reviews
3.5
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.
$147/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 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 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
David - July 2, 2024
Verified

Good Until a Claim Was Made

It started as a good value. However, after one claim from an animal hitting our car, they raised our rates by almost a thousand dollars, with no other claims.

Daniel - June 28, 2024
Verified

Excellent

I really only had to make one claim during my time. It went pretty well.

Linda - June 26, 2024
Verified

Age

I am trying to get a better rate. I have had zero claims in many years, in fact, I've never had a claim for the entire duration. Could this be age discrimination? I am 80 and never travel more than 2 miles away from home, yet my rate still goes up!
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User Reviews
3.2
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.
$124/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

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. However, you must add gap insurance to your Allstate policy when you initially lease or finance the car.

Pros
  • Well-established with superior ratings from A.M. Best

  • Pay-per-mile option available

Cons
  • Low customer satisfaction

  • Rates are merely average compared to other insurers

Read more driver reviews of Allstate
Robert - July 7, 2024
Verified

Good

No claims, no tickets, but pricing is rising faster than inflation.

James - July 7, 2024
Verified

Excellent Insurance for the Money

Very good.

Tina - July 7, 2024
Verified

High Monthly Payments

I would recommend looking around to see if you can find a cheaper policy. Mine seems to be quite high.
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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.
$184/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.
$260/mo

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 amount of complaints

  • Ranked 11 out of 15 companies in the J.D. Power Customer Satisfaction Index Ranking

Read more driver reviews of Progressive
Susan - July 7, 2024
Verified

Too expensive

I believe they charge way too much considering my excellent driving record, minimal daily mileage, zero accidents, and senior citizen status.

Rose - July 7, 2024
Verified

Unsatisfied with Progressive

I had Progressive and they kept raising my rates, even though I had no claims, no tickets, and was a gold status member for 3 years.

Debra - July 7, 2024
Verified

Great for the past ten years but no forgiveness for minor accident

Everything was great until I had a minor accident.
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User Reviews
2.9
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.
$153/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.
$259/mo

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

Cons
  • Many negative reviews and customer complaints

  • Premiums are relatively high compared to industry average

Read more driver reviews of Liberty Mutual
Albert - July 7, 2024
Verified

Better Rates Elsewhere

They failed to follow through on what I was told.

Marvin - July 7, 2024
Verified

Good and Pricey

They are easy to work with and their online platform is user-friendly.

Zeketa - July 6, 2024
Verified

Good Company

They handle claims quickly, provide good customer service, and offer competitive pricing, especially if you bundle.

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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 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.

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 a year. You can get a quote from your insurance company or dealership to see how much you could pay for gap coverage.[1]

  • Does gap insurance cover hurricane damage?

    Gap insurance doesn’t cover hurricane damage. But if your vehicle is totaled as a result of a hurricane or flooding, gap insurance would cover the difference between your car’s value and what you owe on it.[1]

  • 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 your car gets totaled or stolen, 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.

Sources

  1. III. "What is gap insurance?."
  2. III. "Auto insurance basics—understanding your coverage."
  3. Florida Department of Highway Safety and Motor Vehicles. "Florida Insurance Requirements."
Elizabeth Rivelli
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

Courtney Mikulski
Edited byCourtney MikulskiSenior Editor, Auto
Courtney Mikulski
Courtney MikulskiSenior Editor, Auto
  • 3+ years producing insurance and personal finance content

  • Main architect of the Insurify Quality Score

Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.

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