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Gap Insurance in Indiana (2026)

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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Cheapest recent car insurance quotes in Indiana

Recent Indiana car insurance prices for Toyota, Audi, Honda , and more.

*Quotes generated for Insurify users from Indiana within the last 10 days. Last updated on March 5, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.

Rates shown are real-time Insurify user quotes from 500+ 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 March 5, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users from Indiana within the last 10 days. Last updated on March 5, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.

Rates shown are real-time Insurify user quotes from 500+ 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 March 5, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
Sarah Sharkey
Written bySarah Sharkey
Sarah Sharkey
Sarah SharkeyInsurance Writer
  • 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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MacKenzie Korris
Reviewed byMacKenzie Korris
MacKenzie Korris
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 10+ years editing experience

  • NPN: 21630969

MacKenzie Korris is an insurance copy editor with a producer’s license for property and casualty insurance in Missouri.

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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 $123 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.

Find Gap Insurance Online

Full-coverage insurance starts at $83 per month

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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-Owners logo
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.
$44/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.
$78/mo
4.3
Best choice in IndianaBased on 309 verified driver reviews and ratings
How drivers feel about Auto-Owners

Customers appreciate the friendly service and quick claims process but dislike the constant rate increases and perceived inflexibility in pricing.

AI-generated from the text of verified reviews collected by Insurify
Best in Indiana for
Cheap rates
Senior drivers
Ample discounts
How drivers feel about Auto-Owners

Customers appreciate the friendly service and quick claims process but dislike the constant rate increases and perceived inflexibility in pricing.

AI-generated from the text of verified reviews collected by Insurify
Best in Indiana for
Cheap rates
Senior drivers
Ample discounts
Showing recent national reviews - See all 146 Auto-Owners reviews
Wayne
Verified Review
Cost too much for someone who never had a claim
Reviewed in Florida on March 2, 2026
Never had a claim.
Paul
Verified Review
Auto Owners
Reviewed in Michigan on February 10, 2026
Auto Owners' rates have increased year after year.
Warren
Verified Review
Punishment for 65+ years of no problems.
Reviewed in South Carolina on February 1, 2026
I have been licensed since two weeks before my 14th birthday, in other words, 65+ years. I had 2 tickets and 1 accident (that was in July 2024). It cost me a $25 fine and no points, yet my rate increased by 60%. This was the only claim against me over the years. I don't drive much, about 10,000 miles a year if that much, and yet I'm being punished for years of no problems. BTW, the patrolman questioned the ability of the on-lookers of the accident.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
646
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.46
A.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

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

Allstate

Allstate logo
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.
$111/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.
$196/mo
3.8
A solid option in IndianaBased on 9,438 verified driver reviews and ratings
How drivers feel about Allstate

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.

AI-generated from the text of verified reviews collected by Insurify
Best in Indiana for
Accident forgiveness
Wide availability
Cheap rates
How drivers feel about Allstate

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.

AI-generated from the text of verified reviews collected by Insurify
Best in Indiana for
Accident forgiveness
Wide availability
Cheap rates
Showing 16 reviews from Indiana drivers - See all 4,268 Allstate reviews
Mark
Verified Review
My HAPPY Allstate experience.
Reviewed in Indiana on March 1, 2026
I would recommend the Gabe Green Allstate Agency in Carmel, IN to my friends in Indiana.
Dennis
Verified Review
Overpriced
Reviewed in Indiana on February 28, 2026
The insurance rates are too high for the coverage provided.
Linda
Verified Review
Go somewhere else.
Reviewed in Indiana on February 22, 2026
Don't assume correct information will be part of your policy. I had to correct my address and phone number twice. The ID restoration policy never appeared on my policy page. Not everyone who answered the phone could see this policy either. I had the credit bill as proof, but no proof from the insurance that I had it. It wasn't until a year later and several phone calls that I found someone who could confirm that indeed I had this protection. I am changing companies next month.
Yvonna
Verified Review
Everyone at the agency was very helpful, but the policy was too expensive
Reviewed in Indiana on January 18, 2026
Way too expensive for someone who doesn't drive much and has a limited income.
Michael
Verified Review
It's okay at first to get you into the billing cycle, and then it goes up every year to where you can't afford it. But it's okay.
Reviewed in Indiana on January 9, 2026
It's okay at first to get you into the billing cycle, and then it goes up every year to where you can't afford it. But it's okay.
Judy
Verified Review
Poor listening skills
Reviewed in Indiana on December 24, 2025
I was still being charged for a car I traded in, plus the newer car. My home insurance didn’t have the needed coverage, which I had brought up a year before.
Elizabeth
Verified Review
Shop around. Allstate has been around a long time. I keep them because I don't think they will go out of business. Therefore, Allstate will be there if I ever need them. I think my rate should be a lot cheaper. I have been blessed and I don't file claims.
Reviewed in Indiana on November 29, 2025
Shop around. Allstate has been around a long time. I keep them because I don't think they will go out of business. Therefore, Allstate will be there if I ever need them. I think my rate should be a lot cheaper. I have been blessed and I don't file claims.
Mattie
Verified Review
Helpful
Reviewed in Indiana on October 25, 2025
Had a claim. They handled it quickly and kept in touch.
Gregory
Verified Review
High rates, mediocre service
Reviewed in Indiana on October 8, 2025
A theft claim for antique bicycles led to nearly a full year of back-and-forth claims handling with Allstate, often with new handlers. The claim was often referred to other specialists for review who had to start over from scratch. Their rates do not reflect the level of service.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
652
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.02
A.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 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

Progressive

Progressive logo
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
648
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.
$48/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
How drivers feel about Progressive

Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.

AI-generated from the text of verified reviews collected by Insurify
Best in Indiana for
Competitive rates
Easy buying process
Telematics program
How drivers feel about Progressive

Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.

AI-generated from the text of verified reviews collected by Insurify
Best in Indiana for
Competitive rates
Easy buying process
Telematics program
Showing 37 reviews from Indiana drivers - See all 8,126 Progressive reviews
Tina
Verified Review
Survey
Reviewed in Indiana on March 4, 2026
The rate has gone up, so I'm looking for a new policy.
Monty
Verified Review
Bait and Switch Mentality
Reviewed in Indiana on February 22, 2026
I asked for quotes on consecutive days, and the prices for the same insurance varied greatly.
Michael
Verified Review
Immoral Business Practice
Reviewed in Indiana on February 22, 2026
They attract you with a great rate, but when it's time to renew, they increase your premium by 70%.
Michael
Verified Review
Rip-off Scam
Reviewed in Indiana on February 11, 2026
Progressive lured me in with an excellent quote, then raised my premium by 75%. There were no accidents, incidents, or traffic tickets recorded during my initial policy period.
Sherry
Verified Review
Unhappy Progressive Customer
Reviewed in Indiana on February 11, 2026
In the first four years of having this insurance company, everything was good. Then I had an at-fault claim when I backed into a light pole, which only damaged my vehicle, and my monthly rate almost doubled. Then, one year later, they raised my rates again with no other claims or tickets. Needless to say, I'm not happy with Progressive and have found another insurer for $120 monthly cheaper. I feel that they are taking advantage of loyal customers instead of rewarding them for staying with them.
Don
Verified Review
Average
Reviewed in Indiana on February 7, 2026
So-so. They don’t believe you when you say your mother has her own insurance and does not drive your truck. They want you to fill out a form that says she doesn’t drive your truck. Extra hassle to go through. Their driving app is not accurate; it even picks up when I'm driving a forklift at work.
Brenda
Verified Review
Lack of Proof of Insurance from Progressive
Reviewed in Indiana on January 8, 2026
I don't like that I have not received proof that I have car insurance or a policy number. I would like to have that ASAP.
Christopher
Verified Review
Good experience overall
Reviewed in Indiana on January 7, 2026
They did what they could to get my premium within my budget limits without sacrificing the coverage I wanted.
Maria
Verified Review
Frustrating Experience with This Insurance Company
Reviewed in Indiana on January 5, 2026
I'm going to change them soon. They don't allow me to have auto payment, which costs me around $12 to send money to them, plus the high premium. They don't answer emails, and calling them is a hassle.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
648
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.97
A.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 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

  • 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 car insurance quotes in Indiana

Recent Indiana car insurance prices for Chevrolet, Ford, Honda , and more.

*Quotes generated for Insurify users within the last 10 days. Last updated on March 5, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.

Rates shown are real-time Insurify user quotes from 500+ 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 March 5, 2026. 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 March 5, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.

Rates shown are real-time Insurify user quotes from 500+ 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 March 5, 2026. 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 190 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 500+ 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
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • 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.

Sources

  1. III. "What is gap insurance?."
  2. III. "Determining your car's value and cost of repair."
  3. Indiana Department of Insurance. "Auto Insurance."
Sarah Sharkey
Written bySarah SharkeyInsurance Writer
Sarah Sharkey
Sarah SharkeyInsurance Writer
  • 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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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 Cox
Edited byAshley CoxSenior Managing Editor
Headshot of Managing Editor Ashley Cox
Ashley CoxSenior Managing Editor
  • 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.

Featured in

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MacKenzie Korris
Reviewed byMacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
MacKenzie Korris
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 10+ years editing experience

  • NPN: 21630969

MacKenzie Korris is an insurance copy editor with a producer’s license for property and casualty insurance in Missouri.

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