Gap Insurance in Louisiana (2024)

If you total your car, a gap insurance policy can help bridge any difference between your insurance payout and the amount you owe on your car loan.

Jessica Martel
Written byJessica Martel
Jessica Martel
Jessica Martel

Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.

Katie Powers
Edited byKatie Powers
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Updated May 23, 2024

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Cheapest recent rates in Louisiana

Drivers using Insurify have found quotes as cheap as $70/mo for liability only and $122/mo for full coverage in Louisiana.

*Quotes generated for Insurify users from Louisiana within the last 10 days. Last updated on May 23, 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 May 23, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users from Louisiana within the last 10 days. Last updated on May 23, 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 May 23, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

Gap insurance is an optional type of car insurance you can buy if you finance or lease your vehicle. You should consider buying gap insurance if you owe more on your car than it’s currently worth. 

Some lenders and lease companies require gap insurance. Here’s what you need to know about finding gap insurance in Louisiana.

Quick Facts
  • You can purchase gap insurance from a dealership or insurance company.

  • Gap insurance stands for guaranteed asset protection coverage.

  • You should use gap insurance in combination with collision and comprehensive coverage.

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What is gap insurance and how does it work?

If your insurer deems your car a total loss — or if someone steals your vehicle — gap insurance can kick in after your insurance company pays out your collision and comprehensive coverage claim. Gap insurance can help pay the remaining amount you owe on your car loan or lease.

While collision or comprehensive insurance will cover the cost of the car’s actual cash value (ACV) of your car, minus your deductible, this might not cover the amount you still owe because of depreciation. After a year, new cars typically lose 20% of their value.[1]

To avoid paying out of pocket, you can purchase gap insurance coverage from the dealership or an insurance company when you buy or lease a vehicle.

What gap insurance covers in Louisiana

Gap insurance in Louisiana covers the difference between the amount of your claim payout and what you owe on your car loan or lease if you total your vehicle. For example, let’s say you get in a crash that totals your car, the insurance company finds that the current market value of the vehicle is $20,000, and you still owe $25,000 on your loan.

After your $1,000 deductible, your insurance company pays you $19,000 to cover the cost, leaving you with a remaining $6,000. If you have gap insurance, this will help cover the remaining $6,000. Without gap insurance, you’ll have to pay out of pocket.

Keep in Mind

Gap insurance doesn’t cover regular car maintenance, damage due to an accident, or damage to property. It also won’t pay for a replacement vehicle if you total your car. A separate replacement insurance policy can help you purchase a car similar to your totaled vehicle.

Gap insurance vs. full coverage

Full-coverage car insurance in the state of Louisiana can include a combination of collision, comprehensive, liability, and medical payments insurance.[2] It doesn’t include gap insurance in Louisiana or elsewhere. Instead, you should use gap insurance in combination with your full-coverage policy.

Dealerships and car insurance companies typically sell gap insurance as an optional insurance product. Some car dealerships might require you to purchase gap coverage if you have a loan or lease on your vehicle. It’s a good idea to purchase gap insurance to avoid out-of-pocket payments if you total your car in an accident.

Who needs gap insurance in Louisiana?

Louisiana state law doesn’t require drivers to purchase gap insurance. However, if you purchase or lease a new vehicle, the value depreciates quickly. Within the first year of having a new car, your vehicle will likely lose 20% of its value. If you total a leased or financed vehicle, you may owe more than what your insurance company will cover based on the car’s value. 

You should consider purchasing gap insurance in Louisiana if any of the following apply to your situation:

  • You made a small down payment (less than 20%) on the vehicle.

  • You financed the vehicle for 60 months or longer.

  • You leased the car.

  • You purchased a vehicle that depreciates at a faster-than-average rate.

  • You have negative equity from a previous car loan into a new loan.

  • You do a lot of driving and put many miles on your vehicle, as this can cause depreciation.

Gap insurance might not make sense if:

  • You made a large down payment on your vehicle.

  • You plan to pay off your loan in a short period of time.

  • You purchased a used car without financing it.

Before you commit to gap insurance, you should consult a car insurance agent or an auto loan lender to get an expert quote.

How to buy gap insurance in Louisiana 

If you purchase a new car in Louisiana, most dealerships will offer gap insurance. Many insurance companies also offer gap insurance and usually charge less than the dealership.

Adding gap insurance to your collision and comprehensive coverage through your car insurance company only adds about $20 a year to your annual premium, according to the Insurance Information Institute (III).

While it’s possible to buy gap insurance as a stand-alone policy, it’s more common to include it as an add-on to your existing auto insurance policy.

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Best gap insurance companies in Louisiana 

The best insurance companies provide quality coverage, have high customer satisfaction ratings, and earn high Insurify Quality (IQ) Scores. Here are the best gap insurance companies in Louisiana.

USAA

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.7
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
880
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.
$94/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

In business for more than 100 years, USAA exclusively serves members of the military and their immediate families. The company offers multiple types of insurance products, as well as banking, investing, and retirement services. Auto insurance customers have access to a number of discounts, including for bundling, insuring multiple vehicles, living on a military base, and more. A.M. Best gives USAA an A++ rating for financial strength, and the company had the highest or second-highest rating of all insurers in every region in J.D. Power’s Overall Customer Satisfaction Index. Customer reviews are mixed for service and claims processing.

Pros
  • Low premiums

  • SafePilot program rewards good driving with up to 30% discount

Cons
  • Only available to active-duty military, veterans, military spouses, or children of service members or veterans

  • No 24/7 customer phone support

Read our USAA review
Billy - May 22, 2024
Verified

USAA

The price became too expensive.

Stephanie - May 22, 2024
Verified

Customer Service Review

The customer service is always professional and helpful. I am thankful for the great people they employ.

Richard - May 21, 2024
Verified

No

Good company.

Allstate

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.4
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
833
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.
$121/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.
$197/mo

Founded by Sears department store executives in 1931, Allstate offers auto, home, motorcycle, ATV, renters, condo, and term life insurance. Operating in all 50 states, the company has superior ratings from A.M. Best for financial strength and credit. However, Allstate has many negative reviews on consumer websites, and a slightly higher-than-average complaint rating in the National Association of Insurance Commissioners Consumer Complaint Index. Allstate offers many discounts, including for good students, multiple policies, bundling auto and home insurance, new vehicles, safe driving, and good payment history.

Pros
  • Well-established with superior ratings from A.M. Best

  • Pay-per-mile option available

Cons
  • Low customer satisfaction

  • Rates are merely average compared to other insurers

Read our Allstate review
Roberta - May 22, 2024
Verified

Good

Allstate is good, however, I was looking for cheaper insurance.

Mikayla - May 22, 2024
Verified

Allstate's Higher Renewal Prices

They are an insurance company like the rest of them. Just like other insurance providers, they offer lower rates to attract your business. However, as always, when it's time for renewal, the prices just get higher, regardless of your driving record.

Wilford - May 21, 2024
Verified

Disappointed

It's expensive, but the same as all others.

Progressive

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.2
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
819
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.
$144/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.
$235/mo

Although its founding in 1937 makes Progressive comparatively young, it is among the largest car insurers in the U.S. The company offers car, home, renters, commercial, and other types of insurance. Progressive customers can enjoy savings by bundling their car insurance with another type of Progressive policy – typically homeowners or renters. Available discounts range from multi-policy and multi-car discounts, to the Snapshot save driver discount. Progressive has an A.M. Best rating of A+ for financial stability. However, the company has a slightly higher-than-expected number of complaints in the National Association of Insurance Commissioner’s Consumer Complaints Index.

Pros
  • Rewards for good drivers

  • Numerous coverage options and discounts available

Cons
  • Higher-than-expected amount of complaints

  • Ranked 11 out of 15 companies in the J.D. Power Customer Satisfaction Index Ranking

Read our Progressive review
Randy - May 22, 2024
Verified

Difficult to Submit Forms Due to Backlogged Office

I would rate them 5 out of 5, or 10 out of 10, except for their backlogged office handling past Proof Of Insurance forms.

Dexter - May 22, 2024
Verified

No

They keep increasing the prices.

Patricia - May 22, 2024
Verified

They are ok

I probably would not recommend them. I have had no dealings with the agent. I only had a phone conversation to renew and received no help. I was only able to renew with what I had.

How Insurify rates car insurance companies

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 Louisiana drivers.

Gap insurance in Louisiana FAQs

The following information should help answer some remaining questions about buying gap insurance in Louisiana.

  • Does Louisiana require gap insurance?

    Louisiana doesn’t require gap insurance. In fact, no states mandate it. Louisiana law only requires drivers to carry liability coverage to pay for property damages or personal injury if they cause an accident.

  • Who needs gap insurance in Louisiana?

    If you owe more than the current market value of your vehicle, you might benefit from gap insurance. For instance, you should consider it if you put a small down payment on your vehicle, or you purchased a vehicle that depreciates faster than average. Some lenders and leasing companies may require you to purchase gap coverage if you finance or lease your vehicle.

  • What is the purpose of gap insurance?

    Gap insurance covers the difference between the amount of a claim payout and what you owe on your car loan or lease if you total your vehicle. Collision and comprehensive coverage will only cover the current market value of your car, not the remaining car loan balance. Gap insurance prevents you from paying the remainder of your lease or loan out of pocket.

  • How does gap insurance work?

    Let’s say you total your car in an accident. If the insurance company finds the current market value of your vehicle is $20,000, it’ll pay you $19,000 to cover the cost after you pay your $1,000 deductible. If you owed $25,000 on your auto loan, you now have $6,000 in remaining costs that gap insurance can cover. Without gap insurance, you’ll have to pay out of pocket.

Sources

  1. Insurance Information Institute. "What is gap insurance?."
  2. Insurance Information Institute. "Auto insurance basics—understanding your coverage."
Jessica Martel
Jessica Martel

Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

Featured in

media logomedia logo

Compare Car Insurance Quotes Instantly

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
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