120+ more*Quotes generated for Insurify users from Indiana within the last 10 days. Last updated on June 25, 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 June 25, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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4+ years writing insurance and personal finance content
MBA from Roosevelt University
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Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
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Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
Updated
In Indiana, insurers deem a vehicle totaled when repair costs exceed 70% of its value.[1] After a serious accident in the Hoosier State, you could still owe thousands on a car loan for a vehicle you can no longer drive.
Gap insurance, sometimes called guaranteed asset protection, can help you cover the remainder of what you owe. After a total loss, gap insurance kicks in to pay the difference between the insurance settlement and your auto loan or lease.
Here’s what you need to know about gap insurance in Indiana.
In Indiana, nearly 30% of drivers finance their vehicles, and 3.3% lease them.
Progressive offers the cheapest gap insurance in Indiana.
Due to rising vehicle repair costs, the U.S. has a total loss frequency of more than 23% for filed auto insurance claims.[2]
A number of car insurers sell gap insurance as an optional coverage add-on for drivers with a car loan or lease. Since rates vary widely, it’s a good idea to shop around and compare your choices.
Below, you can learn more about the best insurance companies for gap insurance in Indiana.
Gap Insurance Company  | Average Monthly Quote: Gap Insurance | Best For |
|---|---|---|
| Progressive | $2 | Cheapest rates |
| USAA | $2 | Military drivers |
| American Family | $2 | Personalized service |
| 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. | $38/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. | $61/mo |
Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.
Progressive is one of the most affordable companies for gap insurance in Indiana, with gap coverage only adding an average of $2 per month to a full-coverage policy. Progressive refers to gap insurance as loan/lease payoff coverage. It limits your payout to no more than 25% of your car’s value. It also doesn’t cover other charges, such as excess mileage fees.
Add gap insurance for low monthly fee
Local agents in 200+ Indiana cities
Variety of available discounts
Limits loan/lease payout to a maximum of 25% of your car’s value
Doesn’t cover a loan or lease’s finance or excess mileage fees
Below-average J.D. Power customer satisfaction rating in the North Central region
| User Reviews | 4.9 |
|---|---|
| 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. | 9.1 /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. | $39/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. | $73/mo |
USAA's score | Industry average | |
|---|---|---|
| Coverage options | 4.9 | 3.2 |
| Customer service | 4.8 | 3.6 |
| Discounts | 4.9 | 2.9 |
| Policy transparency | 4.9 | 3.1 |
| Value | 4.9 | 2.9 |
Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.
More than 325,00 veterans live in Indiana, according to U.S. census data. If you’re a veteran or part of the military community, USAA is the best choice for auto insurance. USAA has a policy similar to gap insurance that it calls car replacement assistance. This coverage pays out 20% more than your vehicle’s actual cash value.
Plus, USAA doesn’t have vehicle age requirements or restrict coverage availability if you’re not the vehicle’s original owner.
One of the cheapest gap insurers in Indiana
Car replacement assistance pays out 20% more than your car’s ACV
No interest paid for car replacement assistance
Car replacement assistance only covers owned or financed vehicles (not leased)
No local agents in Indiana
Sells coverage only to members of military community
| User Reviews | 4.6 |
|---|---|
| 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. | 9.3 /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. | $101/mo |
American Family's score | Industry average | |
|---|---|---|
| Coverage options | 4.6 | 3.2 |
| Customer service | 4.9 | 3.6 |
| Discounts | 4.6 | 2.9 |
| Policy transparency | 4.5 | 3.1 |
| Value | 4.3 | 2.9 |
Drivers appreciate the fast claims processing and good initial rates but dislike the consistent rate increases and poor communication from agents.
American Family offers a gap insurance policy — advertised as loan or lease gap coverage — to drivers in the Hoosier State. You can get a quote online and buy it at any time through one of the many local agents in Indiana for just a few extra dollars per month. If you’re unsure of whether gap insurance makes sense, a local agent can help you out.
Gap insurance costs just $2 extra per month
Above-average J.D. Power customer satisfaction rating in the North Central region
Local agents in several Indiana cities
Doesn’t allow you to add gap insurance to your policy at any time
May find cheaper full-coverage insurance elsewhere
Has less gap insurance policy information online than some insurers
Here’s how gap insurance works in three simple steps:
Your insurer deems your vehicle a total loss. This can occur after someone steals your vehicle or if you have a serious accident. In Indiana, insurers total a vehicle when the cost to repair it exceeds 70% of its value.
Your insurance company covers the actual cash value (ACV). Your vehicle’s ACV is its value after depreciation, rather than what you originally paid for it.
Your gap insurance covers the “gap.” The gap car insurance policy will reimburse you for the difference between the insurance payout and the amount you still owe on your loan or lease.
Compare rates from the nation’s leading insurance companies
The cost of gap insurance in Indiana depends on where you buy coverage from, but auto insurers typically offer the most affordable policies.
The average monthly cost of full-coverage insurance in Indiana is $129, according to Insurify data. Adding gap insurance to an existing full-coverage policy costs between $2 and $8 more each month in Indiana. Auto-Owners, State Farm, and USAA are a few of the cheapest insurers to consider in the state.
You can also get gap insurance through an auto lender or car dealership, but it’s typically more expensive than buying from an auto insurer.
Gap insurance provides coverage if you total your vehicle or if someone steals it and you still have a balance on your loan or lease. It prevents you from having to continue making payments for a car you can no longer drive.
You finance a $35,000 vehicle. One year later, your insurer deems it totaled after a car accident. Your car insurance company pays $25,000 (the car’s current ACV), but you still owe $30,000 on the loan. Gap insurance kicks in to cover the $5,000 difference so you don’t have to come up with it out of pocket.
It’s worth noting that gap insurance won’t cover vehicle repairs after an accident or other costs like your deductible, unpaid loan or lease fees, or your medical expenses.
Here’s a breakdown of what gap insurance does and doesn’t cover in the event of total loss.
What It Covers | What It Doesn’t Cover |
|---|---|
| Loan balance shortfall after total loss | Your deductible |
| Lease payoff gap | Repairs to your damaged car or medical expenses for related injury |
| Theft-related payoff gap | Unpaid fees or interest on your auto loan or lease |
| Negative equity | Rental car fees, extended warranties, or add-ons |
Full-coverage car insurance in Indiana usually includes collision and comprehensive coverage, but it doesn’t typically include gap insurance. Instead, you can buy gap insurance as an add-on to your existing policy, like you can for accident forgiveness or roadside assistance.
Gap insurance is worthwhile if you want to make sure you cover the difference between what you owe on your car loan or lease and the value of your vehicle if you total it.
Below, you can learn what full-coverage and gap insurance policies cover and how they compare.
Coverage Feature | Full Coverage | Gap Insurance |
|---|---|---|
| Covers repairs after an accident? | Yes | No |
| Covers loan or lease gap? | No | Yes |
| Covers accident-related medical expenses? | Yes | No |
| Covers negative equity? | No | Yes |
Indiana has no law requiring gap insurance. Indiana state law requires drivers to purchase a minimum amount of bodily injury liability and property damage liability.
But if you have a loan or lease on your car, your lender might require it, along with collision and comprehensive coverage.
It may make sense to purchase gap insurance if any of these statements apply to you:
Your down payment was less than 20%.
You’re leasing your car, and your lender requires gap insurance.
Your repayment term exceeds 60 months.
You rolled over negative equity into your new auto loan.
Your new car depreciates quickly.
You can skip gap coverage in the following situations:
You own your vehicle outright.
You made a large down payment.
Your remaining loan balance is less than the car’s value.
Insurify partners with 120+ top insurers for real quotes
Indiana drivers can purchase gap insurance in a few different ways. You can buy it through your car insurance company, online insurers as a stand-alone policy, a car dealership, a credit union, or a bank.
Here’s a look at how buying gap insurance from each type of insurance company or lender compares:
Gap Insurance Source | Pros | Cons | Add-On or Stand-Alone? |
|---|---|---|---|
| Car dealership |
|
| Stand-alone |
| Auto insurance company |
|
| Add-on to existing full-coverage policy |
| Bank/lender |
|
| Stand-alone |
| Credit union |
|
| Stand-alone |
| Online insurer |
|
| Stand-alone |
As you explore your choices in Indiana, the following information can help answer your additional questions about gap insurance.
Gap insurance reimburses you for the “gap” between what you owe on your car and its actual cash value (ACV) if you total it or someone steals it. A standard policy typically only covers the ACV, which could be less than the amount you owe on your vehicle. Gap coverage helps prevent out-of-pocket expenses if you owe more than what your insurer will cover.[3]
No. Indiana doesn’t require gap insurance. Indiana law only mandates drivers to buy a minimum amount of liability insurance. But some lenders may require gap insurance if you have an auto loan or lease. It’s a good idea for additional financial protection in the event of total loss.
Where you buy coverage will determine the cost of gap insurance in Indiana. Car insurance companies usually offer the most affordable gap coverage, with add-ons ranging from $2 to $8 per month.
Some gap insurance companies offer gap coverage for used vehicles. Gap insurance can be helpful if your used car depreciates and you’d owe more than your car loan or lease if your insurer declared it a total loss.
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:
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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4+ years writing insurance and personal finance content
MBA from Roosevelt University
Featured in
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
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