Gap Insurance in Indiana (2024)
If you finance or lease your vehicle in Indiana, you might benefit from gap insurance. But state law doesn’t require it.
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Written bySarah Sharkey
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7+ years writing insurance and personal finance content
Contributor to top media, including USA Today
A passionate personal finance advocate, Sarah’s writing has graced the pages of many of the personal finance and insurance industries’ top web publications.
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Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Updated October 29, 2024
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Table of contents
Vehicles depreciate over time, so your vehicle might be worth less than what you owe on your auto loan or lease agreement after some time. Guaranteed asset protection insurance — also called gap insurance — covers the difference between the vehicle’s value and what you owe on the loan if your insurance company declares your car a total loss after a covered claim.[1]
If you financed or leased your vehicle, gap insurance can provide much-needed financial protection. Here’s what you need to know about gap insurance.
Quick Facts
A full-coverage policy in Indiana costs an average of $148 per month. Adding gap coverage typically only tacks on an extra $2 per month.
Auto-Owners, Allstate, and Progressive are some of the best gap insurance companies in Indiana.
You can usually buy gap insurance from an auto insurance company, but dealerships and lenders may offer some form of it as well.
How gap insurance works
Gap insurance covers the difference between the insurance settlement after a total loss and your auto loan or lease, protecting you from being financially responsible for a car you can’t drive anymore.
If your auto insurer declares your car a total loss from an accident or theft, your comprehensive or collision coverage will pay out your vehicle’s actual cash value (ACV), minus your deductible. Notably, your insurer won’t reimburse you for your car’s purchase price.[2]
But cars can lose value quickly. A new car’s value decreases by about 20% within the first year.
If you took out a loan to purchase or you leased your car, its value might be less than what you owe on the loan or lease after a short period. Then, if your insurance company declares your car a total loss after an accident or theft, it’ll only pay out the car’s actual cash value, minus the deductible — and you’re financially responsible for the remainder of the loan or lease.
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What gap insurance covers in Indiana
Gap insurance is an optional coverage type that you can usually add to an insurance policy with either comprehensive or collision coverage. The extra coverage will only kick in to pay the remaining value of your loan if the insurance company totals your car as part of a covered claim.
Gap insurance doesn’t cover damage in every situation. It won’t cover everyday wear and tear or mechanical breakdowns. It also won’t apply to claims that the insurance company won’t cover through your comprehensive or collision insurance.
For Example
Let’s say your vehicle is worth $10,000, but you owe $15,000 on your auto loan. After totaling your vehicle in an accident, the insurance company pays out $10,000 under your collision coverage — which becomes $9,000 after your $1,000 collision deductible.
Without gap insurance, you’re on the hook to repay your lender $6,000. If you have gap insurance, this policy covers the remaining $6,000 to pay off your auto loan after the car accident.
Best gap insurance companies in Indiana
If you’re looking for the best gap coverage in Indiana, start your search with these three companies.
Auto-Owners
Auto-OwnersCompare personalized, real-time quotes
| 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. | 8.5/10 |
| 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. | $27/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. | $53/mo |
Auto-Owners boasts relatively low rates. Its loan/lease gap coverage can provide more protection from depreciating value, but you can also include rental auto gap coverage to have more coverage when using rental cars.
Pros
Above-average J.D. Power customer satisfaction rating in Indiana
Multiple discounts
Cons
Available in only 26 states
Some negative customer reviews on Trustpilot
Read more driver reviews of Auto-Owners
Ronald W - October 29, 2024
Verified
They Cancelled Our Home Insurance
We had no problem with Auto-Owners regarding our auto insurance. However, we were disappointed when Auto-Owners cancelled our home insurance. They stopped all home insurance in 'fire prone areas'.
Martha - October 28, 2024
Verified
Good
The premiums keep increasing.
Lawrence - October 24, 2024
Verified
Honest Answers to Questions
Please refer to my answers to the previous questions.
…
Allstate
AllstateCompare personalized, real-time quotes
| User Reviews | 3.1 |
|---|---|
| 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. | $68/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. | $133/mo |
Allstate offers gap insurance in addition to standard car insurance coverage options. You can also save with several discounts, including those for bundling your policies, safe driving, being a good student, and paying your premiums on time.
Pros
A (Excellent) financial strength rating from AM Best
Pay-per-mile option available
Cons
Below-average J.D. Power customer satisfaction rating in Indiana
Rates are merely average compared to other insurers
Read more driver reviews of Allstate
Howard - October 29, 2024
Verified
They Have You By The Short Hairs
I was on a three-lane highway in heavy traffic and couldn't avoid a piece of metal in my lane. I couldn't swerve or I would have hit other cars. Allstate said the accident was the driver's fault and then doubled my insurance cost.
Hugh - October 29, 2024
Verified
Actual Crash Damages vs. Damages Quoted Over the Phone
There were problems getting the correct amount paid out when I made a claim. I had to escalate the issue to the Senior Vice President to get a proper settlement when a deer hit my truck. There was a $5000 difference between what was paid out when the estimator assessed the value of damage to my truck and the actual estimate done by a local car dealership. The Senior Vice President agreed that the amount of damage done was the amount quoted by the local car dealership.
Miriam - October 29, 2024
Verified
Best Overall
Check around before choosing. Allstate has been my choice for years.
…
Progressive
ProgressiveCompare personalized, real-time quotes
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 827 |
|---|---|
| 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. | $54/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. | $105/mo |
Progressive has relatively affordable average rates in Indiana. Its loan/lease payoff option provides coverage of up to 25% of the vehicle’s actual cash value.
Pros
Numerous coverage options and discounts available
Rewards for good drivers
Cons
Below-average J.D. Power customer satisfaction rating in Indiana
Higher-than-expected number of complaints with the National Association of Insurance Commissioners (NAIC) for a company of its size
Read more driver reviews of Progressive
Denise - October 29, 2024
Verified
Awesome!
I haven't had any problems with the company. I am pleased with the work they do.
Priscilla - October 29, 2024
Verified
They Increased My Insurance Payment from $117 a Month to $199 a Month
They are very inconsiderate.
Lisa - October 29, 2024
Verified
Disappointed
They were good until they doubled my monthly payment. My deductible also went up to $1000. At that price, I can fix my vehicle on my own.
…
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 driver ages, genders, credit scores, and driver profiles for Indiana drivers.
Gap insurance vs. full coverage
A full-coverage auto insurance policy usually includes liability coverage, collision coverage, comprehensive coverage, and uninsured/underinsured motorist coverage. Gap insurance is typically not included in a full-coverage policy. Instead, you can add this specialty coverage to your current policy.
If you own a vehicle with an outstanding auto loan balance higher than its current value, gap insurance can offer additional financial protection.
Cheapest recent rates in Indiana
Drivers using Insurify have found quotes as cheap as $49/mo for liability only and $56/mo for full coverage in Indiana.
*Quotes generated for Insurify users within the last 10 days. Last updated on October 29, 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 October 29, 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 October 29, 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 October 29, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Who needs gap insurance in Indiana?
Indiana law doesn’t require drivers to carry gap insurance. While this type of insurance coverage is an optional add-on, it can be a worthwhile addition.
You may need gap insurance as an Indiana driver if:
Your down payment was less than 20%. Making a low down payment when you purchase your car means your car’s value depreciation is likely to outpace your repayment of the loan.
The loan’s terms are longer than five years. If your loan or lease terms are longer than 60 months, you have a higher chance of owing more on the loan than the car is actually worth.
You already have negative equity from your last car loan. If you’ve taken out a car loan before and rolled it into your new car loan, it’s important to get gap insurance to protect yourself from an even bigger difference between your debt and your vehicle’s value.
You regularly travel long distances. If you drive your vehicle more than average, the value might depreciate more quickly. Gap insurance can protect you when your car’s mileage causes its value to drop below the auto loan balance.
You’re leasing or financing a luxury car. Certain car models, such as sports cars, depreciate faster than more standard ones.
Keep in Mind
If you put down at least 20% on your car, have a loan term of fewer than 60 months, or purchase your vehicle outright, you probably don’t need gap insurance. Even if you do buy this coverage, you can contact your car insurance company to remove it from your policy when you pay off your vehicle.
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How to buy gap insurance in Indiana
While car dealerships might sell you gap insurance, it’s usually more affordable to purchase it through an auto insurance company. Insurers that offer gap insurance typically sell it as an add-on to a full-coverage car insurance policy.
As you explore your options, it’s best to shop around. Car insurance companies calculate rates differently, resulting in significantly different costs among companies. Taking a few minutes to shop around for quotes could help you save on your car insurance costs.
Adding gap insurance coverage to your insurance policy will raise your rates but only by about $20 per year, according to the Insurance Information Institute.
But purchasing a policy with the right coverage for your situation is a good idea. Once you find the company that offers coverage that suits your needs and budget, you can finalize your policy.
Gap insurance in Indiana FAQs
Check out the additional information below as you research your gap insurance options in Indiana.
Does Indiana require gap insurance?
No. Indiana state law doesn’t require drivers to carry gap insurance coverage. But Indiana drivers must carry a minimum amount of liability and uninsured/underinsured motorist coverage.[3]
How does gap insurance work in Indiana?
Gap insurance in Indiana works the same as in any other state. If you total your car or someone steals it, your insurance company will pay the difference between any remaining loan balance and the claim payout. Without gap insurance, you’d be on the hook to cover the remaining loan balance out of pocket.
Which companies sell gap insurance in Indiana?
Auto-Owners, Allstate, and Progressive are just three insurance companies that sell gap insurance in Indiana, but you should shop around for quotes to find more auto insurers that offer this coverage.
Who should get gap insurance in Indiana?
You should consider gap insurance if you bought a car with less than 20% down, financed a vehicle for more than 60 months, leased a vehicle, rolled negative equity from an old car loan into a new loan, or purchased a vehicle that depreciates faster than average.
Is gap insurance actually worth it?
Like most types of insurance, gap insurance is worth it for some drivers and not for others. If you have an auto loan balance that’s more than the current value of your vehicle, gap insurance might be worth the cost. But if you can comfortably pay off the auto loan after a total loss, gap insurance might not be worth it.
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
- 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.
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More cities in Indiana
Sources
- III. "What is gap insurance?."
- III. "Determining your car's value and cost of repair."
- Indiana Department of Insurance. "Auto Insurance."
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Sarah SharkeyInsurance Writer
Sarah Sharkey is a personal finance writer who enjoys helping people make savvy financial decisions. She covered insurance and personal finance topics. You can find her work on Business Insider, Money Under 30, Rocket Mortgage, Bankrate, and more. Connect with her on LinkedIn.
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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