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Best Cheap Gap Insurance Companies in Kentucky: Quotes, Discounts (2022)

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Doug Shaffer

By: Doug Shaffer

Edited by Tanveen Vohra | Reviewed by licensed insurance agent, Amber Benka

Last Updated June 15, 2022

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

Gap Insurance in Kentucky

Using an auto loan or participating in a leasing program is a great way to finance a new car in Kentucky. However, it’s important to have the proper coverage in place to financially protect yourself should your vehicle be deemed a total loss after an accident or a theft. Gap insurance is one of the best options to help cover you in these particular situations. The Insurify platform can assist you in finding the perfect gap insurance policy to meet your needs within minutes.

See More: Compare Car Insurance

Best Companies for Gap Insurance in Kentucky

If you leased a vehicle and are looking for auto insurance or guaranteed asset protection, consider getting a quote from one of the Kentucky insurance companies below.

Insurance CompanyAverage Monthly Cost for Leased Cars in Kentucky
State Auto$229
Midvale Home & Auto$252
Liberty Mutual$331
Bristol West$373
The General$398
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

What is gap insurance?

Gap insurance is often associated with car loans or leasing programs. The coverage itself financially protects you from having to pay the difference between your car’s actual cash value and the remaining balance on a loan when your vehicle is totaled. Without the gap auto insurance policy, you would have to pay these costs out of pocket.

The coverage is often required by lenders that offer financing options to those purchasing a new vehicle. Unlike other Kentucky car insurance products, like liability insurance or bodily injury insurance, gap coverage is optional and not mandated by the state.

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Who should buy gap insurance in Kentucky?

Anyone with car insurance coverage can purchase gap coverage. However, the drivers who will benefit the most are those who use an auto loan or lease to obtain their next vehicle. If you fall into one of the following categories, you should consider a guaranteed asset protection policy:

  • Your car loan term agreement is longer than five months.
  • You paid 20 percent or less as a down payment on your vehicle.
  • Your car is known to depreciate faster than other automobiles.
  • You are partaking in a leasing program offered by a dealership.

Kentucky Gap Insurance Laws

In Kentucky, there are no laws that require a driver to carry gap insurance. However, it is common for lenders to ask a policyholder to add the coverage to their auto insurance products before approving them for a loan.

How much gap insurance do I need in Kentucky?

Generally, when it comes to the amount of gap insurance you need, the lending company you are working with will outline it in the loan agreement. Regardless of the amount, it is essential to note that there are typically two different types of gap policies. One type will only pay up to 25 percent, while the other will pay off your loan completely.

Since gap insurance is an add-on product, it often pairs well with other insurance products, such as collision coverage or liability coverage. When reviewing your gap insurance options, the deductible is something to keep in mind, as some policies may have a higher deductible than others.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Kentucky

Regardless of whether you are a safe driver or not, having gap insurance can save you from having to pay thousands of dollars out of pocket. The insurance policy covers the gap between the actual value of your vehicle and the remaining balance on your loan. It can also be added to an existing auto insurance policy to create a comprehensive coverage plan.

Even though gap insurance won’t cover medical bills or medical expenses, it does have the added benefit of a reimbursement component. To qualify for the money back, you will need to pay your policy in advance and pay off your vehicle early.

How Much Gap Insurance Costs in Kentucky

How much is gap insurance in Kentucky?

The average cost to insure a leased vehicle in Kentucky is $325 per month. However, what you pay for gap insurance will largely depend on whether you buy gap insurance from your car dealership or from your insurance provider.

Many factors play a role in the rates you might receive for gap insurance in Kentucky, including age, driving history, and policy limits. Location can also affect your monthly payments. For example, a motorist in Lexington may not pay the same rate as a driver in Louisville. On average, you should expect to pay around $325 for standard coverage with gap insurance.

See More: Average Cost of Car Insurance in Kentucky

How to Buy Gap Insurance in Kentucky

For Kentucky drivers, there are several ways to purchase gap insurance. Typically, you can obtain coverage through lenders that offer auto loans, dealerships, or insurance companies. Each option provides a gap insurance product that is slightly different, so you will need to review the details closely.

Often, car insurance companies provide the best rates and are the best option for buying gap coverage. However, deciding which auto insurance provider to purchase through can be a difficult decision. Most motorists only consider large insurance companies such as Allstate, GEICO, and Progressive. Still, several others offer affordable coverage, too.

Generally, the best way to ensure you find coverage at an affordable rate is to use a comparison platform like Insurify. The Insurify platform allows you to quickly compare insurance quotes that you qualify for on a single page. This makes it easier to review policy details and pick the plan that makes the most sense for you.

Frequently Asked Questions: Gap Insurance in Kentucky

  • Currently, Kentucky doesn’t have a state law that forces drivers to carry gap insurance on their vehicles. On the other hand, drivers could be forced by a lender to carry a gap insurance policy if they take out a loan or lease a car. If you must have gap coverage, you will often need to maintain the insurance as long as the lease or loan is active.

  • If you purchase gap insurance, you may be able to get money back once you’ve paid off your car. To do so, you have to meet a few requirements. First, you had to have paid your gap insurance policy in advance, and second, you would need to pay your vehicle off early. If you do both, you could receive a refund for the remaining portion of your gap coverage.

  • Finding a cheap gap insurance policy in Kentucky can be tricky. Several insurance companies offer coverage, but not all provide the same coverage limits or insurance rates. Often, the best way to find affordable gap insurance is by shopping around with a platform like Insurify, where you can compare multiple quotes all on a single screen.

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  • The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

    Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

    With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Doug Shaffer
Doug Shaffer

Insurance Writer

Doug Shaffer works as a content writer. He has had the opportunity to write for several national insurance carriers in the past and brings with him over six years of experience working with both business and consumer products. He enjoys being able to break down complex insurance jargon to allow consumers to fully understand their policies.

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