Best Cheap Gap Insurance Companies in Louisiana: Quotes, Discounts (2023)

Gap Insurance in Louisiana

Auto loans and leasing programs are a popular way for Louisiana drivers to purchase a car. However, these options make you liable for the loan balance if the car is totaled in an accident. Gap insurance helps provide financial protection for drivers in these instances. Insurify offers an easy-to-use platform that will allow you to quickly compare gap insurance quotes in Louisiana and find the right policy for you.

See More: Compare Car Insurance

Best Companies for Gap Insurance in Louisiana

Louisiana drivers who are leasing a new vehicle and plan to purchase gap insurance or another type of auto insurance policy should consider getting quotes from the following providers.

See More: Cheap Car Insurance in Louisiana

What is gap insurance?

Gap insurance can come in handy when leasing or purchasing a new car with an auto loan. Gap, or guaranteed asset protection, insurance ultimately covers the gap between a car’s value and the amount still owed on a loan or a lease if it is stolen or totaled. Without the additional coverage, a driver would be responsible for paying the difference.

Even though it isn’t required by Louisiana state law, most companies that offer car loans or leases will still need you to purchase gap insurance. This ensures the loan or lease will still be paid off should something happen.

Who should buy gap insurance in Louisiana?

Generally, most drivers don’t consider buying gap insurance unless their lender requires it. However, there are several scenarios where having gap insurance can be quite beneficial.

If any of the following apply to you, you should consider purchasing gap insurance coverage:

• You financed your vehicle for a term longer than five years.

• You paid less than a 20 percent down payment when buying your vehicle.

• You are currently participating in a leasing program.

• You financed a vehicle that depreciates more quickly than others.

Louisiana Gap Insurance Laws

Similar to other states, Louisiana doesn’t require that drivers carry a gap insurance policy along with their current car insurance coverage. However, most lenders that provide financing options will require drivers to purchase gap insurance as an add-on until the loan is paid off.

How much gap insurance do I need in Louisiana?

Whether you need gap insurance due to a requirement by your lender or you value the peace of mind the coverage provides, you will want to make sure you have enough protection. Some plans will only pay up to 25 percent of the value of the vehicle, while others will pay out enough to cover the entire remaining balance of the loan or lease.

In order to determine which option is best for you, it is important to compare multiple quotes. Looking at details such as what the gap insurance covers, deductible, and potential loan/lease payoff information will give you a good idea of which plan you should purchase.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Louisiana

A gap insurance policy in Louisiana will cover any costs left over between a vehicle’s actual cash value (ACV) and the outstanding loan or lease balance if that car is deemed a total loss or is stolen.

There is also the possibility of getting a reimbursement from the coverage if you pay your gap insurance in advance and pay off your vehicle early. This feature is unique to gap insurance that you won’t find in other auto insurance products, such as liability insurance, comprehensive coverage, or collision coverage.

How Much Gap Insurance Costs in Louisiana

Like with a typical car insurance policy, several factors can affect how much a gap insurance plan may cost you. For example, factors like a vehicle’s age, your location, and the actual cash value of your car can all play a role in determining how much you pay for coverage.

Generally speaking, most drivers can expect to pay around $418 a month for car insurance with gap coverage.

See More: Average Cost of Car Insurance in Louisiana

How to Buy Gap Insurance in Louisiana

When it comes to purchasing a gap insurance policy, there are plenty of options for Louisiana drivers. Most large insurance companies as well as car dealerships and lenders offer coverage. With so many options available, it is important to compare quotes before purchasing gap insurance coverage.

Insurify offers the easiest way to shop for gap insurance by providing a platform that allows you to quickly compare multiple quotes at the same time.