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Gap insurance is the missing link in your car policy to protect you if your car is totaled or stolen. But gap insurance in Nebraska can be a tricky concept. Discover exactly what it is, if you need it, and how to get the best coverage.

Shopping for car insurance can be just as tricky as finding the right vehicle. Insurify helps Nebraska drivers find the best gap insurance available in the state. Answer a few questions about your driving history and vehicle, and you’ll get top insurance quotes from up to 200 car insurance companies.

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Best Companies for Gap Insurance in Nebraska

Who offers gap insurance in Nebraska?

Many auto insurance companies in Nebraska offer gap insurance. Travelers offers the cheapest gap insurance on average, but if you choose to purchase gap insurance, check with your insurance provider to see if they offer a gap insurance add-on. Note that you will need comprehensive and collision coverage to purchase gap insurance.

When shopping for coverage, keep in mind that gap insurance is typically cheaper when you buy it from an insurance company.

Gap insurance can cost between $114 and $333 per month for Nebraska drivers. Travelers insurance company offers the least expensive gap coverage, while Midvale and Nationwide are under $150 per month.

Insurance CompanyAverage Monthly Cost for Leased Cars in Nebraska
Midvale Home & Auto$114
Liberty Mutual$199
Bristol West$267
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

See More: Cheap Car Insurance in Nebraska

What is gap insurance?

Gap insurance is a type of coverage that protects you if your car is totaled or stolen. It stands for “guaranteed asset protection.” Whether you lease or finance a car, a gap insurance policy can bridge the gap between what the car is worth and how much you still owe on the loan.

When you lease a new car or buy one using an auto loan, you’re on the hook to repay the entire balance after an accident. Without gap insurance, you could end up owing more than the car is worth—your insurance coverage may not cover the full amount if your car is totaled or stolen.

Even if you have full-coverage Nebraska car insurance, your auto insurance policy would only cover the current market value at the time of the accident. With gap coverage, you’re responsible for paying the deductible. But the gap policy pays for the rest of the loan amount for the car, even if your car insurance claim reimburses you for less due to depreciation.

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Who should buy gap insurance in Nebraska?

Gap insurance is for Nebraska drivers looking for peace of mind when leasing or financing a vehicle. A policy can ensure that you’d never owe more than the car’s value in the event of theft or if the insurance company totaled it.

Nebraska drivers should consider buying gap insurance if they:

  • Put down less than 20 percent when buying a car

  • Borrow using a loan that’s 60 months or more

  • Buy a vehicle that depreciates quickly

  • Roll negative equity into the new car loan

  • Lease a vehicle

You shouldn’t buy gap insurance if you paid cash for your car or already paid off your vehicle loan. If you put down more than 20 percent or finance using a short-term loan, gap insurance might also not be for you.

Nebraska Gap Insurance Laws

Nebraska’s car insurance requirements include having drivers purchase liability insurance. The Nebraska Department of Motor Vehicles (DMV) refers to it as “proof of financial responsibility,” which can be a certificate of insurance, bond, property bond, or certificate of self-insurance.

It typically includes minimum coverage amounts for bodily injury liability to pay for medical payments and property damage liability for other motorists. However, Nebraska car insurance laws don’t require drivers to buy gap insurance.

You won’t encounter penalties for not having coverage. But you could face significant financial repercussions. If your car is totaled and your regular auto policy doesn’t cover the full amount you owe, you must pay off the remaining loan balance.

How much gap insurance do I need in Nebraska?

The amount of gap insurance you need can vary. As your car depreciates, you may end up owing more than it’s worth—you want to buy enough coverage to last until the loan is less than the car’s value. That way, you’re protected whether something happens four weeks or four years after you purchase or lease the vehicle.

Keep in mind that you don’t need any gap insurance if you paid cash for your car or already have your auto loan paid off. You may also opt-out of coverage if you made a sizable down payment or have a loan term that’s under 60 months.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Nebraska

Nearly half of all Americans—44 percent—take out auto loans to buy a car. Unfortunately, new cars, trucks, and SUVs depreciate quickly, meaning their value continues to decrease over time. If you financed or leased a new car, gap insurance is a sensible way to protect your investment.

If you have comprehensive coverage or collision coverage, your policy may not be enough to pay off your loan balance. Gap insurance coverage pays the difference between the outstanding amount of your loan and the vehicle’s value at the time of a total loss.

For example, suppose you bought a vehicle and car insurance in Omaha. You have a $40,000 auto loan that you plan to repay over 60 months. Your car might be worth $40,000 the day you drive it off the lot, but it will be worth a lot less four years later.

An accident that totals your car means you would only be reimbursed for the car's value at the time of the incident. So, if the insurance company valued your car at $25,000, you would still owe $15,000 on the loan. But if you have gap insurance, it will offset the amount you still owe.

How Much Gap Insurance Costs in Nebraska

On average, gap insurance purchased from an insurance company costs Nebraskan drivers $219 per month. It’s not a bad deal considering you get an enormous amount of financial protection in return for buying a policy.

The average cost in the U.S. is $289 per month—Nebraska drivers can enjoy gap coverage for less than the rest of the nation.

See More: Average Cost of Car Insurance in Nebraska

How to Buy Gap Insurance in Nebraska

Although gap insurance is not legally required, many Nebraska drivers choose to buy a policy. Auto dealers and financial institutions may offer it during the loan process. You can also purchase gap insurance through your car insurance provider.

Fortunately, it is easy to find the lowest prices on gap insurance through Insurify. Using Insurify's cutting-edge insurance comparison platform, you can look at insurance rates from multiple insurers for auto coverage, including gap insurance. From there, you can review the quotes and pick the best policy for your needs.

Frequently Asked Questions: Gap Insurance in Nebraska

  • Nebraska does not require drivers to buy gap insurance when taking out a car loan or leasing a vehicle. However, lenders may require this additional coverage. You can buy it from the lender or opt to buy it from a car insurance provider.

  • Depending on the terms of your gap insurance, you might qualify to receive a partial premium refund. Typically, you must pay the premium in full in advance and pay off the car loan early to qualify. However, if the additional premium is built into the monthly payment, you may not receive a refund.

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  • 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 Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.

Amy Beardsley
Amy BeardsleyInsurance Writer

Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.