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Georgia drivers reported more than 373,000 car crashes in 2023, and any one of them could total a financed or leased vehicle.[1] If an insurance adjuster declares your car a total loss, your insurance policy typically pays out what the car was worth just before the accident, not what you still owe on it.
That can leave a gap between the insurance payout and the remaining auto loan or lease balance. You could owe thousands of dollars on a car you can no longer drive. Guaranteed asset protection, or gap insurance, covers that difference and protects you from an unexpected financial burden at an already difficult moment.
If you’re reviewing your coverage options, it’s also worth comparing the best car insurance in Georgia to ensure you have the protection you need. Read on to learn more about gap insurance in Georgia.
Just over 30% of Georgia drivers finance their vehicles.
Georgia averages more than 350,000 car crashes each year, and roughly 23% of auto claims are a total loss.[2]
Auto-Owners offers the cheapest gap insurance in Georgia.
Gap insurance rates and eligibility requirements vary from company to company. Comparing quotes helps you find the right coverage at the right price.
The table below compares the best gap insurance companies in Georgia, including average costs and the features that set each insurer apart.
Gap Insurance Company  | Average Monthly Quote | Best For |
|---|---|---|
| Auto-Owners | $3 | Affordable coverage |
| Allstate | $4 | Bundling policies |
| Progressive | $6 | Digital policy management |
| User Reviews | 4.3 |
|---|---|
| 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. | 8.2 /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. | $73/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. | $130/mo |
Auto-Owners's score | Industry average | |
|---|---|---|
| Coverage options | 4.0 | 3.2 |
| Customer service | 3.5 | 3.6 |
| Discounts | 3.6 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.5 | 2.9 |
Customers appreciate the friendly service and quick claims process but dislike the constant rate increases and perceived inflexibility in pricing.
Auto-Owners has the cheapest car insurance rates in Georgia for standard full-coverage policies. Drivers can add gap coverage for as little as $3 per month. That makes it a good pick for cost-conscious drivers financing a vehicle who also want protection from owing money on a totaled car.
Auto-Owners rates also stay competitive after an accident, so you don’t have to worry about the cost of coverage skyrocketing after filing a claim.
Lowest average full-coverage rates in Georgia
Above-average J.D. Power auto claims satisfaction ranking
A+ (Superior) financial strength rating from AM Best
Must purchase coverage through a Georgia independent agent
Below-average customer satisfaction in the Southeast region
Limited discounts compared to some competitors
| 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. | 8.9 /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. | $85/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. | $153/mo |
Allstate's score | Industry average | |
|---|---|---|
| Coverage options | 3.8 | 3.2 |
| Customer service | 3.8 | 3.6 |
| Discounts | 3.8 | 2.9 |
| Policy transparency | 3.7 | 3.1 |
| Value | 3.3 | 2.9 |
Drivers appreciate the friendly customer service and efficient claims processing, but many find the rates too high and experience unexpected price increases. Some also report poor communication from agents.
Allstate offers gap insurance as an add-on to full-coverage policies in Georgia. It’s a good option if you’re looking for a wide variety of coverages beyond gap insurance. The insurer’s average full-coverage policies run below the Georgia state average, with gap coverage adding around $4 per month to the cost.
Allstate’s bundling discounts can help Georgia drivers lower the cost of carrying multiple coverages, including gap insurance. Customers who bundle auto and home or renters insurance can save up to 20%. That translates into big savings for drivers in higher-cost metro areas like Atlanta.
Gap insurance available as an optional add-on coverage
Accident forgiveness helps prevent rate increases after an accident
Pair gap coverage with new car replacement coverage for stronger total-loss protection
Gap coverage only available for newly financed or leased vehicles
Smaller agent network in Georgia
Below-average J.D. Power claims satisfaction score
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 637 |
|---|---|
| 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. | $98/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. | $201/mo |
Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.
Progressive’s full-coverage rates in Georgia are close to the statewide average. While it’s not the cheapest option, adding loan/lease payoff coverage costs about $6 per month. The insurer also has an A+ (Superior) financial strength rating from AM Best.
Progressive stands out for its digital tools. Georgia drivers can get quotes online, manage policies, access ID cards, pay bills, and track claims via its mobile app or website
Easy to add and manage loan/lease payoff coverage online
Extensive online and mobile tools
Small accident forgiveness available to all new customers
Below-average J.D. Power auto claims satisfaction ranking
Loan/lease payoff coverage limited to 25% of your vehicle’s value
Doesn’t cover finance charges or lease-related fees
Gap insurance kicks in after your insurance company settles a total-loss claim. The process works like this:
You get in an accident, or someone steals your car, and you file a claim with your insurance company.
Your insurance company pays out the car’s actual cash value (ACV). That’s what the car was worth at the time of the loss after accounting for depreciation — not what you originally paid for it.
If you still owe more on your loan or lease than the ACV payout, gap insurance covers the remaining balance.
Compare rates from top insurers that offer gap insurance in Georgia
Georgia drivers pay an average of $259 for full-coverage insurance, according to Insurify data. Adding gap insurance to an existing policy costs between $3 and $9 per month.
Auto-Owners has the cheapest gap coverage, with State Farm and Country Financial close behind. Liberty Mutual and First Acceptance are among the most expensive companies for gap insurance.
You may also be able to buy gap coverage through a dealership or lender. But that’s typically more expensive than adding it to your car insurance policy.
Gap insurance covers the difference between your car’s ACV and your outstanding loan or lease balance at the time of a total loss. It can be especially valuable for Georgia drivers who finance a new vehicle because cars often depreciate faster than loan balances decline.
Knowing what gap insurance does and doesn’t cover helps avoid surprises. Here’s a breakdown:
What Gap Insurance Covers | What Gap Insurance Doesn’t Cover |
|---|---|
|
|
For example, say you finance a new Honda Accord in Atlanta for $32,000. Two years later, another driver hits you and totals the vehicle. Your insurance company determines the ACV to be $24,000 and pays that amount. But you owe $27,500 on your loan. Gap insurance helps cover the difference between the vehicle’s value and the amount you still owe.
Full-coverage insurance protects your car, and gap insurance protects your finances. Many Georgia drivers assume full coverage pays off their entire loan after a total loss, but it only covers the car’s ACV.
If you owe more on your lease or loan than that, the remaining balance is your responsibility. Gap insurance covers that difference. The two work together, but you typically have to buy gap coverage separately as an add-on to your auto insurance policy or through a lender, dealership, or credit union.
The table below shows key differences between full-coverage and gap insurance policies.[3] [4]
Coverage Feature | Full Coverage | Gap Insurance |
|---|---|---|
| Covers repairs | Yes | No |
| Covers loan gap | No | Yes |
| Payout after a total loss | Vehicle’s ACV | Difference between ACV and loan/lease balance |
| Required by lender/leasing company | Yes | No |
Georgia law doesn’t require gap insurance, but you may want or need this coverage for plenty of reasons, including:
You financed with a small down payment. New cars lose roughly 30% of their value within two years.[5] A small down payment means you’re more likely to owe more than the vehicle is worth early in your loan term.
You have a long loan term. As of December 2025, the average new car loan term in the U.S. was 66 months.[6] The longer you take to pay down your loan, the longer you’re at risk of owing more than the car is worth.
You finance or lease your vehicle. More than 30% of Georgia drivers finance their vehicles, and just less than 3% lease them, according to Insurify data. While lenders and leasing companies typically can’t require you to buy gap coverage, it can protect you financially if you’re underwater on your loan or lease.
Gap insurance is probably unnecessary if you paid cash, made a large down payment, or have already paid your loan balance below your car’s current market value.
Insurify partners with 120+ top insurers for real quotes
You have several options for buying gap insurance in Georgia, including the dealership, your car insurance company, your bank or credit union, or a stand-alone policy from another insurer.
Here’s a look at the pros and cons of each option.
Gap Insurance Source | Pros | Cons | Add-On or Stand-Alone? |
|---|---|---|---|
| Car dealership |
|
| Stand-alone |
| Auto insurance company |
|
| Endorsement to existing full-coverage policy |
| Lender/bank |
|
| Stand-alone |
| Credit union |
|
| Stand-alone |
| Online insurer |
|
| Stand-alone |
Whether you’re buying a new car or comparing coverage options, understanding how gap insurance works can help you avoid unexpected costs. Here are answers to a few common questions about buying gap insurance in Georgia.
No. Georgia law doesn’t require gap insurance, and your lender or leasing company typically can’t require it either. But it can protect you financially if your car is totaled and you owe more than its ACV.
Adding gap coverage to an existing car insurance policy costs an average of $3–$9 per month, according to Insurify data. Purchasing it through a dealership or lender typically costs more. The exact amount depends on your loan balance and vehicle type.
You can buy gap insurance as an add-on to your full-coverage car insurance policy, through your lender when you take out the loan, at the dealership, or you can buy a stand-alone policy online. Adding it to your existing car insurance policy is usually the most affordable option.
It depends. Some insurance companies offer gap coverage on used vehicles, but eligibility requirements vary by insurer. Many companies limit coverage to vehicles within a certain age, mileage, or loan terms, so ask your insurer if you qualify.
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8+ years writing about insurance, taxes, and personal finance
Certified public accountant
Featured in
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in
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