120+ more*Quotes generated for Insurify users from Michigan within the last 10 days. Last updated on October 17, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users from Michigan within the last 10 days. Last updated on October 17, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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15 years at the Boston Globe
5+ years covering insurance industry
Doug joined Insurify as a senior content writer in 2025. He was previously a regular contributor to InsuranceNewsNet.
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Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
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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25 years teaching risk management and insurance course
Former commercial lines underwriter
David is the managing director of the Brantley Risk and Insurance Center. He has been quoted by The New York Times and CNN.
Updated
Many drivers in Michigan lease or finance their vehicles, according to Insurify data. But new cars lose 20% or more of their value during the first year on the road.[1] Insurers also generally pay only the vehicle’s actual cash value if the vehicle is totaled, not the amount owners still owe their lender. All this means an untimely accident could leave you making payments on a vehicle you no longer have.
That’s where guaranteed asset protection (gap) insurance comes in. Gap coverage bridges the difference between your insurance payout and the remaining balance on your vehicle loan or lease agreement following a covered total loss.
Michigan law doesn’t require gap insurance, but it’s often worth considering if you financed a new vehicle, especially if you made a small down payment or chose a long-term loan.
Michigan’s no-fault insurance system also provides personal injury protection (PIP) benefits for people injured in auto accidents. These include medical expenses and, in qualifying cases, wage loss and replacement services. But it doesn’t change how gap insurance works.[2]
Here’s what else you need to know about gap insurance in Michigan.
Roughly 4 out of 5 new vehicles purchased in the U.S. are financed or leased, making gap insurance relevant to many Michigan drivers, as the state consistently has one of the highest shares of drivers leasing new vehicles.
Gap insurance applies only after a covered total loss. It doesn’t pay out for repairs or routine maintenance.
Gap insurance typically costs $25–$60 per year in Michigan, according to Insurify data.
Not every insurer offers gap insurance in the same way. Some companies provide traditional guaranteed asset protection, while others offer loan/lease payoff coverage, which may pay only a percentage above your vehicle’s actual cash value. And some don’t offer any type of gap coverage at all.
Comparing both your auto insurance premium and the type of protection offered can help you find the best value.
Here, you can see a collection of some of the top gap insurance insurers in Michigan.
Gap Insurance Company | Average Monthly Full-Coverage Quote | Best For |
|---|---|---|
| Auto-Owners | $117 | Local agent service |
| Progressive | $162 | Online policy management |
| Nationwide | $239 | Customizable coverage |
| Travelers | $280 | Optional coverages |
| Allstate | $274 | New-vehicle financing |
| 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. | $69/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. | $117/mo |
Auto-Owners's score | Industry average | |
|---|---|---|
| Coverage options | 4.0 | 3.2 |
| Customer service | 3.7 | 3.6 |
| Discounts | 3.5 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.5 | 2.9 |
Customers appreciate the friendly service and quick claims process but dislike the constant rate increases and perceived inflexibility in pricing.
Founded in Mount Pleasant, Auto-Owners has a particularly strong presence throughout the state and consistently earns high marks for customer satisfaction. Drivers purchasing newer vehicles often appreciate working with a local independent agent who can explain optional coverages and financing-related protection.
Largest Michigan-based insurer
Extensive independent agent network
A+ (Superior) rating from AM Best
Quotes generally require contacting an agent
Digital tools more limited than some competitors
Optional coverages vary by vehicle
| 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. | $112/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. | $162/mo |
Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.
Progressive offers loan/lease payoff coverage rather than traditional gap insurance. For qualifying vehicles, the coverage may pay up to 25% above your vehicle’s actual cash value if it’s declared a covered total loss. This isn’t identical to dealer-sold gap insurance, so be sure to compare coverage details.
Top-rated insurance website and robust digital policy management
Competitive rates for many Michigan drivers
Wide range of optional coverages and discounts
Loan/lease payoff not identical to traditional gap
Loan/lease payoff generally limited to 25% of actual cash value
Customer satisfaction trails some competitors[3]
| User Reviews | 4.3 |
|---|
Nationwide's score | Industry average | |
|---|---|---|
| Coverage options | 4.0 | 3.2 |
| Customer service | 4.0 | 3.6 |
| Discounts | 3.7 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.5 | 2.9 |
Drivers appreciate the helpful and knowledgeable customer service but dislike the frequent and significant rate increases. Some also found the claims process to be slow and frustrating.
Nationwide offers gap coverage as an optional endorsement. It also offers several optional coverages that can complement gap protection. Michigan drivers can add rental car expense coverage, which helps pay for alternative transportation after a covered loss, and roadside assistance for services such as towing, jump-starts, and fuel delivery.
Accident forgiveness can prevent a first at-fault accident from increasing your rate. Nationwide also offers a total loss deductible waiver, which can be particularly useful alongside gap coverage because Nationwide’s gap insurance itself doesn’t cover the policy deductible.
Offers both gap and new-car replacement coverage
Broad selection of optional auto insurance endorsements
Multiple discounts for bundling and safe driving
Gap coverage available only in select states
Gap coverage limited to vehicles 6 years old or newer
Must have collision coverage to add gap coverage
| 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. | 8.5 /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. | $165/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. | $280/mo |
Travelers's score | Industry average | |
|---|---|---|
| Coverage options | 4.6 | 3.2 |
| Customer service | 4.6 | 3.6 |
| Discounts | 4.3 | 2.9 |
| Policy transparency | 4.6 | 3.1 |
| Value | 4.3 | 2.9 |
Customers appreciate the insurer’s communicative customer service and efficient claims process. But they’re dissatisfied with the consistent and sometimes significant price increases, even for those with clean driving records.
Travelers offers several endorsements that appeal to Michigan drivers financing newer vehicles, including new-car replacement, rental reimbursement, roadside assistance, accident forgiveness, and a total loss deductible waiver. When combined with comprehensive and collision coverage, its optional protections can help drivers customize policies for newer cars, pickup trucks, and SUVs.
Multiple optional endorsements
Strong bundling opportunities
A++ financial strength rating from AM Best
Eligibility requirements apply, including vehicle purchase conditions
Doesn’t cover overdue loan payments, extended warranties, or carryover balances
Coverage availability and options vary by state
| 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. | $131/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. | $274/mo |
Allstate's score | Industry average | |
|---|---|---|
| Coverage options | 3.8 | 3.2 |
| Customer service | 3.9 | 3.6 |
| Discounts | 3.8 | 2.9 |
| Policy transparency | 3.7 | 3.1 |
| Value | 3.3 | 2.9 |
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.
Allstate offers multiple protections aimed at drivers with newer vehicles. Its loan/lease gap coverage can help pay the difference between a totaled vehicle’s actual cash value and the remaining loan or lease balance, while new-car replacement coverage can replace an eligible totaled vehicle with a new one rather than paying only its depreciated value.
Together, the options give Michigan drivers financing newer vehicles protections against both depreciation and negative equity after a total loss.
New-car replacement coverage available for eligible newer vehicles
Accident forgiveness can prevent an at-fault accident from increasing your premium
Additional optional coverages available, including new-car replacement protection and rideshare insurance
Limited to the original loan or leaseholder of a new vehicle
Allstate Vehicle Protection gap must be purchased when the vehicle is financed
Coverage availability may vary by state and policy
To identify the best gap insurance companies in Michigan, Insurify’s editorial team weighed each insurer’s average rates for the state, additional costs for gap insurance, coverage options, Trustpilot ratings, and Insurify Quality (IQ) Score.
Gap insurance protects drivers who owe more on a financed or leased vehicle than it’s worth if the vehicle is totaled in an accident. If your vehicle is declared a total loss after a covered collision or theft, your auto insurer will pay its actual cash value (ACV).
This value represents the vehicle’s market value immediately before the loss. Because vehicles depreciate quickly, that insurance payout may be less than the balance of your car loan or lease agreement.
If you have gap insurance, the coverage helps pay the difference between your insurance settlement and the remaining loan balance, subject to the policy’s terms and limits.
Gap insurance is optional in Michigan, but most insurers require you to carry comprehensive and collision coverage before you can purchase it.
Here’s how the process of using gap insurance typically works:
Your vehicle is totaled in a covered accident or is stolen and never recovered.
Your auto insurance company determines the vehicle’s actual cash value.
Your insurer issues a payout based on that value.
If your remaining loan amount exceeds the settlement because of depreciation, gap insurance pays some or all of the difference.
Depending on the policy, you may still owe your insurance deductible, although some policies include deductible assistance.
Comparing car insurance quotes through Insurify could save you up to 50%
Gap insurance is generally one of the least expensive optional coverages available.
When purchased through an auto insurance company, it typically costs $20–$60 per year, according to Insurify data. But premiums can vary depending on the insurer, vehicle, financing terms, and the amount financed.
Buying gap insurance through a dealership is often considerably more expensive because the cost is frequently rolled into the vehicle loan, meaning you’ll also pay interest on the coverage over the life of the loan.
Gap insurance covers the difference between what your vehicle is worth and what you still owe after a covered total loss.
Because new vehicles lose value rapidly, many Michigan drivers can find themselves owing more than their vehicles are worth during the first years of ownership. Without gap insurance, vehicle owners could find themselves owing thousands of dollars after it has already been declared a total loss.
Here, you can see a list of cases that gap insurance commonly covers and doesn’t cover in Michigan.
Typically Covered | Typically Not Covered |
|---|---|
| Difference between actual cash value and remaining vehicle loan balance | Collision repairs |
| Remaining lease balance on a qualifying lease | Routine maintenance |
| Covered theft resulting in total loss | Mechanical breakdowns |
| Certain policies include deductible assistance | Extended warranties |
One common misconception is that gap insurance buys you a replacement vehicle. It doesn’t. Instead, it protects you from continuing to make payments on a vehicle that has been totaled.
Another misunderstanding is that full coverage automatically includes gap insurance. It doesn’t. Gap insurance is almost always purchased separately as an endorsement or through a lender or dealership.
Suppose you’re a Grand Rapids driver and you purchase a new SUV for $45,000 with a small down payment. A year later, that SUV is declared a total loss after a covered crash. The insurer determines the vehicle’s actual cash value is $35,500, but you still owe $40,000 on the loan.
Without gap insurance, you would still owe $4,500 following your insurer’s payout for the vehicle’s ACV. But if you had gap insurance, the policy would generally cover that difference, subject to its terms.
Many Michigan drivers assume that purchasing full coverage protects them from every financial loss after an accident. In reality, full coverage and gap insurance serve two completely different purposes.
A typical full-coverage policy combines:
Those coverages pay to repair your vehicle or compensate you for its actual cash value if it’s declared a total loss, along with paying for injuries and property damage you cause.
They don’t pay the remaining balance on your vehicle loan if you owe more than the vehicle is worth.
That’s why many lenders recommend or require gap insurance for newly financed vehicles. Drivers financing new SUVs, light trucks, and, in some cases, motorcycles or snowmobiles through specialized lenders can also ask whether gap insurance is available and whether it makes financial sense for their loan.
Here, you can see how coverage limitations differ between full coverage and gap insurance.
Coverage Feature | Full Coverage | Gap Insurance |
|---|---|---|
| Collision damage | ✔ | ✖ |
| Theft losses | ✔ | ✖ |
| Pays vehicle’s actual cash value | ✔ | ✖ |
| Pays remaining loan balance above ACV | ✖ | ✔ |
| Helps cover depreciation | ✖ | ✔ |
| Commonly required for financed vehicles | Often | Sometimes |
Michigan law doesn’t require drivers to purchase gap insurance, but that doesn’t mean it’s unnecessary. If you finance or lease a vehicle, gap coverage can protect you from owing thousands of dollars after a covered total loss.
Gap insurance may be a smart investment if the following applies to you:
You financed a new vehicle with little money down. New vehicles lose value quickly, increasing the chance that your loan balance will exceed the vehicle’s actual cash value.
You leased your vehicle. Many lease agreements either require gap insurance or strongly recommend it.
You have a long-term auto loan. Financing for 72 months or longer means it typically takes more time to build equity.
You rolled negative equity into a new loan. If you still owed money on your previous vehicle, you’re more likely to owe more than your new vehicle is worth.
You purchased an expensive SUV or light truck. Higher-priced vehicles often leave owners with larger loan balances during the early years of ownership.[4]
Michigan drivers also face winter weather, icy roads, lake-effect snow in many parts of the state, and heavy commuter traffic in metropolitan areas such as Detroit and Grand Rapids. While these conditions don’t change how gap insurance works, they reinforce the importance of understanding the risk of your vehicle being declared a total loss.
On the other hand, gap insurance may not be worthwhile if you’ve nearly paid off your vehicle, you made a substantial down payment, or your vehicle is worth more than the remaining balance on your loan.
Insurify partners with 120+ top insurers
Michigan drivers have several options for purchasing gap insurance. While dealerships often offer the coverage during the vehicle-purchase process, buying it through your auto insurer is usually less expensive. Banks and credit unions may also offer gap insurance as part of a vehicle financing package.
Before purchasing coverage, compare not only the price but also the policy’s limits, exclusions, and whether it includes benefits such as deductible assistance.
Here, you can compare the pros and cons of getting gap insurance from several different sources.
Gap Insurance Source | Pros | Cons | Typical Form |
|---|---|---|---|
| Car dealership | Convenient to purchase when buying the vehicle; available as part of the financing transaction | Can cost more if financed because you may pay interest on the cost | Gap waiver/coverage associated with finance agreement |
| Auto insurance company | Can be added to an auto policy; may cost less than dealer gap and isn’t financed with the vehicle loan | Not every insurer offers it; typically requires comprehensive and collision | Auto policy add-on/endorsement |
| Bank | Can obtain gap protection from the lender handling the auto loan; integrated with financing | Terms and availability depend on lender | Gap waiver associated with finance agreement |
| Credit union | May offer gap with its vehicle financing; keeps loan and gap protection together | Requires an eligible financing arrangement; terms vary | Usually stand-alone |
| Online insurer | Can purchase/add coverage directly through participating insurers; convenient for comparing insurance options | Product may be loan/lease payoff rather than traditional gap; payout limits may apply | Usually auto policy add-on |
If you’re shopping for a new vehicle, ask each insurer:
Is the coverage true gap insurance or loan/lease payoff coverage?
Is there a maximum percentage or dollar limit?
Does the policy include deductible assistance?
Are any eligibility requirements based on the loan-to-value ratio or vehicle age?
Because Michigan has a unique no-fault auto insurance system, many drivers have questions about how optional coverages such as gap insurance fit into their policies. Here are answers to some of the most common questions.
No. Michigan law doesn’t require gap insurance. But your lender or leasing company may require it as a condition of financing a vehicle. Even when it’s optional, gap insurance can help protect drivers who owe more on their vehicle than it’s worth.
Gap insurance covers the difference between your vehicle’s actual cash value and the remaining balance on a qualifying vehicle loan or lease if the vehicle is declared a covered total loss. It doesn’t pay for repairs, maintenance, or damage that doesn’t result in the vehicle being totaled.
Michigan’s most significant recent auto insurance change was the no-fault reform law that took effect in 2020. The reform gave drivers more choices for personal injury protection (PIP) coverage while maintaining mandatory liability insurance requirements. The law didn’t create or require gap insurance.[5]
The cheapest auto insurer depends on your age, driving history, vehicle, location, and coverage choices. Auto-Owners, USAA, and Chubb offer the cheapest gap insurance coverage in Michigan, according to Insurify data, averaging about $3 per month. Keep in mind, the rate you pay will depend on your unique circumstances. That’s why it’s important to compare quotes from several insurers to find the best coverage for you.
There’s no Michigan insurance law known as the “77-day rule” for gap insurance or other auto insurance. The phrase sometimes appears online in discussions of time limits for charging people with DUIs, but it isn’t part of Michigan’s insurance statutes. It’s not a law requiring drivers to purchase insurance within 77 days, and it has nothing to do with gap insurance.
Insurify data scientists analyzed more than 250 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:
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15 years at the Boston Globe
5+ years covering insurance industry
Doug joined Insurify as a senior content writer in 2025. He was previously a regular contributor to InsuranceNewsNet.
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
25 years teaching risk management and insurance course
Former commercial lines underwriter
David is the managing director of the Brantley Risk and Insurance Center. He has been quoted by The New York Times and CNN.
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
