Gap Insurance in New Jersey (2026)
Gap insurance covers the difference between a totaled car’s value and your loan payoff amount. NJM has the cheapest gap insurance add-on coverage in New Jersey.
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Written byCatherine Hiles
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Catherine HilesInsurance, Personal Finance Writer
16+ years in personal finance and insurance writing
Certified Financial Education Instructor
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Edited byKatie Powers
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Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
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MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
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Around 26% of drivers in New Jersey have a loan or lease agreement on their vehicle, according to Insurify data. In a serious accident that totals your car, you might owe more on your loan or lease than your insurance claim pays out.
Guaranteed asset protection, also called gap insurance, covers the difference between your car’s actual cash value (ACV) and your loan or lease payoff amount.
Here’s what you need to know about gap insurance in New Jersey.
Quick Facts
Approximately 23% of drivers in New Jersey have car loans.
The U.S. has a total loss frequency of 23% out of all insurance claims filed.[1]
New Jersey Manufacturers (NJM) has the cheapest average gap insurance coverage in New Jersey, at $4 per month.
Best gap insurance companies in New Jersey
Gap insurance prices vary between insurers, so it’s smart to comparison shop with several different insurance companies. The table below shows some of the best companies in New Jersey for gap insurance, who each is best for, and the average monthly quote.
Gap Insurance Company | Average Monthly Quote | Best For |
|---|---|---|
| Travelers | $12 | New-car owners |
| Plymouth Rock | $6 | Senior drivers |
| New Jersey Manufacturers | $4 | Cheap rates |
Disclaimer: Table data is based on real-time New Jersey quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
Travelers: Best for new-car owners in New Jersey
| 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. | $359/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. | $443/mo |
4.6
Best choice in New JerseyBased on 1,779 verified driver reviews and ratings
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 |
How drivers feel about Travelers
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.
Based on analysis of verified reviews collected by Insurify
Best in New Jersey for
Showing 9 reviews from New Jersey driversSee all 658 Travelers reviews
Verified Review
Reviewed in New Jersey on August 1, 2026
I haven’t had a claim in years, but my rates keep going up.
Verified Review
Reviewed in New Jersey on May 2, 2026
I decided to change to save money by switching from broker insurance to an online insurance.
Verified Review
Reviewed in New Jersey on April 21, 2026
They don't tell you the truth about the insurance policy. After 3 months, they doubled the policy.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
616
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
Travelers offers two types of coverage to help pay for a new car if an accident totals your current one. Gap coverage pays the difference between your car’s ACV and your loan or lease payoff amount, while Premier New Car Replacement will replace your car with a brand-new one of the same make and model.
This unique coverage lasts for the first five years of ownership, so you can have an extra sense of security while buying a new car.
Pros
Offers new car replacement coverage
Accident forgiveness available
Available discount for hybrid/electric cars
Cons
Relatively expensive gap insurance coverage
Poor Trustpilot rating
Below-average J.D. Power customer satisfaction rating in New Jersey
Plymouth Rock: Best for senior drivers in New Jersey
| User Reviews | 3.9 |
|---|---|
| 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. | $132/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. | $203/mo |
3.9
A solid option in New JerseyBased on 317 verified driver reviews and ratings
Plymouth Rock's score | Industry average | |
|---|---|---|
| Coverage options | 3.4 | 3.2 |
| Customer service | 3.0 | 3.6 |
| Discounts | 2.9 | 2.9 |
| Policy transparency | 3.4 | 3.1 |
| Value | 3.0 | 2.9 |
How drivers feel about Plymouth Rock
Drivers appreciate the competitive rates and efficient customer service but dislike the frequent rate increases and the mandatory tracking app.
Based on analysis of verified reviews collected by Insurify
Best in New Jersey for
Showing 5 reviews from New Jersey driversSee all 139 Plymouth Rock reviews
Verified Review
Reviewed in New Jersey on July 28, 2026
They didn’t ask me if I wanted online communication; they just did it. Every time I need to access my account, it’s locked, and I have to either reset my password or call in and speak to someone through the automated system. I complained to customer service, and I have to remember each month because my policy has been canceled due to their failure to process it, so I was reinstated. It feels like it’s designed on purpose.
Verified Review
Reviewed in New Jersey on April 16, 2026
Call and compare your rates.
Verified Review
Reviewed in New Jersey on March 23, 2026
Having trouble talking directly to my agent and getting new prices/info. Haven't had serious issues with them, but prices will determine if I stay.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
618
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.29
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NR
Why we picked this company
Senior drivers in New Jersey can get affordable rates through Plymouth Rock, both on their base policy and on gap insurance. One unique benefit of insuring your car with Plymouth Rock is the Get Home Safe program. Once per policy per year, you can submit a taxi ride receipt for reimbursement up to $50 if you’re unable to drive home.
Pros
Relatively affordable gap insurance coverage
Low rates for senior drivers in New Jersey
One reimbursed taxi ride per year for policyholders
Cons
Fewer available discounts than some insurers
Coverage is less customizable and flexible than with competitors
Below-average J.D. Power customer satisfaction rating in New Jersey
NJM: Best for cheap rates in New Jersey
| User Reviews | 4.2 |
|---|
4.2
Best choice in New JerseyBased on 153 verified driver reviews and ratings
NJ Manufacturers's score | Industry average | |
|---|---|---|
| Coverage options | 4.2 | 3.2 |
| Customer service | 3.8 | 3.6 |
| Discounts | 3.5 | 2.9 |
| Policy transparency | 4.0 | 3.1 |
| Value | 3.4 | 2.9 |
How drivers feel about NJ Manufacturers
Drivers appreciate the friendly service and efficient claim handling but dislike the significant rate increases and overall high prices.
Based on analysis of verified reviews collected by Insurify
Best in New Jersey for
Showing recent national reviews
Verified Review
Reviewed in Pennsylvania on August 5, 2026
Be prepared to pay, because NJM Insurance Co. is not cheap.
Verified Review
Reviewed in New Jersey on October 22, 2025
I was a customer for 25 years until they raised my premium by over $300 a year.
Verified Review
Reviewed in New Jersey on September 21, 2025
Okay, but I want a lower rate.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
711
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.19
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+
Why we picked this company
NJM offers some of the lowest rates in New Jersey, and gap insurance (called Auto Loan/Lease Coverage Endorsement) adds an average of just $4 per month.
The insurance company also ranked highly in the mid-Atlantic region in the J.D. Power U.S. Auto Insurance Study. This suggests an overwhelmingly positive customer experience, which can provide policyholders with a sense of security.
Pros
Low car insurance rates in New Jersey
New Jersey-specific Defensive Driving Discount
High J.D. Power customer satisfaction rating in New Jersey
Cons
Can only add coverage up to 30 days after adding the car to your policy
Doesn’t offer accident forgiveness
No 24/7 customer support
How gap insurance works in New Jersey
Gap coverage helps minimize your out-of-pocket costs if an accident totals your car or if someone steals it. Here’s how it works in New Jersey:[2] [3]
Your insurance company totals your car. You file a claim with your insurance company, which determines that the repair cost exceeds the ACV.
Your insurer pays the vehicle’s ACV. As long as you have the proper coverage, your insurance company will pay out your car’s ACV.
Your gap insurance covers the difference. Once your insurer pays the ACV, your gap insurance will pay the rest of your loan balance.
How much does gap insurance cost in New Jersey?
Gap insurance in New Jersey varies in cost depending on where you buy it from. If you add gap insurance to your existing full-coverage car insurance policy, you’ll pay an average of between $4 and $12 per month, according to Insurify data.
It’s usually cheaper to buy gap insurance as an add-on to your current policy than to buy stand-alone coverage from a dealership or car loan lender.
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What gap insurance covers in New Jersey
Gap insurance in New Jersey covers the difference between your outstanding car loan amount and your vehicle’s ACV.
For example, say you buy a new car and take out a $40,000 loan. After one year, an accident totals your car, and your insurer pays out $30,000, which is your car’s current ACV. Gap insurance pays the extra $10,000 to cover the difference between the car’s value and the amount you still owe on the loan.
If you don’t have gap insurance, you’ll have to pay the $10,000 out of pocket.
Below, see what gap insurance does and doesn’t cover after a vehicle theft or total loss accident.
What Gap Covers | What Gap Doesn’t Cover |
|---|---|
| Remaining car loan balance | Car repairs |
| Lease payoff gap | Bodily injury or property damage |
| Theft-related payoff gap | Car insurance deductible |
| Negative vehicle equity | Fees or add-ons |
Agent Tip: Is gap insurance the right coverage for you?
“Gap insurance is a fairly affordable add-on that can save you thousands if you total your car or it gets stolen. Do some research on your car’s actual cash value (the original value minus depreciation). If it’s less than what you owe on your loan, you should consider gap insurance.”
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Anuj DesaiLicensed Property & Casualty Insurance Agent
Gap insurance vs. full coverage
Full-coverage car insurance includes comprehensive and collision coverage that helps pay for your own vehicle’s repairs after an accident. But it won’t cover the difference between your car’s ACV and the amount you owe on your loan.[4]
Gap insurance provides additional coverage to prevent you from paying out-of-pocket costs if an accident totals your car or if someone steals it. A policy that includes both full coverage and gap insurance can offer better protection than full coverage alone.
The table below shows how full coverage and gap insurance differ.
Coverage Feature | Full Coverage | Gap Insurance |
|---|---|---|
| Covers repairs | Yes | No |
| Covers loan gap | No | Yes |
| Covers injuries | Yes | No |
| Covers vehicle theft | Yes | Yes |
| Covers accidents that don’t total your car | Yes | No |
Who needs gap insurance in New Jersey?
New Jersey doesn’t require gap insurance, though dealers can offer it when you buy a new car. It’s a smart addition to your insurance policy if you fall into one of the following categories:
You have an auto loan. Approximately 23% of drivers in New Jersey have vehicle loans, according to Insurify data. Gap insurance can cover the difference between your insurer’s ACV payout and the amount you owe on your loan if an accident totals your vehicle.
Your loan is 60 months or longer. The longer your loan, the faster you’ll become underwater, which is when you owe more on your loan than the car is worth. Gap insurance prevents you from paying this difference out of pocket.
You’re leasing the vehicle. Your leasing company may require you to get gap insurance.
You rolled over negative equity from an old car loan. If you owed money on your previous car when you sold it, the lender may roll that negative equity into your new loan. That means you’ll quickly owe more on your loan than your current car is worth. Gap insurance can cover this difference.[5]
You generally won’t need to buy gap insurance if you put down a large down payment, take out a short loan, or purchase the car outright.
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How to buy gap insurance in New Jersey
You can buy gap insurance for a new or used car in New Jersey from a car dealership, insurer, lender, or stand-alone gap insurance company. The following table shows the pros and cons of each source.
Gap Insurance Source | Pros | Cons | Add-On or Stand-Alone? |
|---|---|---|---|
| Car dealership |
|
| Stand-alone |
| Auto insurance company |
|
| Add-on to existing policy |
| Bank |
|
| Stand-alone |
| Credit union |
|
| Stand-alone |
| Online insurer |
|
| Add-on to existing policy or stand-alone |
Gap insurance in New Jersey FAQs
The answers to the following common questions can help you understand gap insurance in New Jersey and decide if it’s right for you.
Does New Jersey require gap insurance?
No, New Jersey doesn’t require drivers to buy gap insurance. If a dealer offers gap insurance, you have the right to decline.[6]
How does gap insurance work in New Jersey?
Gap insurance in New Jersey can cover some or all of the difference between what you owe on your loan and your car’s ACV if someone steals your car or an accident totals it. Once your insurer approves your claim and pays out your car’s value, gap insurance can help you pay off any remaining balance on your car lease or loan.
How much is gap insurance in New Jersey?
Gap insurance costs between $4 and $12 per month in New Jersey as an add-on to an existing car insurance policy, according to Insurify data.
What company has the cheapest car insurance in New Jersey?
NJM has the cheapest average car insurance in New Jersey, at $147 per month for full coverage and $4 per month for a gap insurance add-on.
Sources
- CCCIS. "CCC Crash Course 2026 Report Finds Higher Severity and Record Total Loss Frequency."
- Kelley Blue Book. "Totaled Car: Everything You Need to Know."
- Naic.org. "What Does Auto Insurance Cover?."
- NJDOBI. "Consumer Information - New Jersey's Basic Auto Insurance Policy."
- FTC Consumer Advice. "Auto Trade-Ins and Negative Equity: When You Owe More than Your Car is Worth."
- Justia. "Title 17 - Corporations and Institutions for Finance and Insurance."
Methodology
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:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Catherine HilesInsurance, Personal Finance Writer
16+ years in personal finance and insurance writing
Certified Financial Education Instructor
Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969