Gap Insurance in New York (2026)
Gap insurance pays off the balance of a lease or loan if your vehicle is totaled or stolen.
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Written byCatherine Collins
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Catherine Collins
13+ years creating insurance and personal finance content
Published author in financial education
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Edited byMacKenzie Korris
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MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
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Reviewed byDavid Marlett
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David MarlettAdvisor
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If someone steals or totals your financed or leased vehicle in New York, you’ll be responsible for paying off any outstanding loan balance. Since cars lose value quickly, your full-coverage insurance payout could be less than what you owe on your vehicle.
Gap insurance can cover any difference between your claim payout and loan balance. But in New York state, it’s up to you to take the initiative to buy it. A full-coverage policy in New York costs $252 per month, on average. Gap coverage typically adds an extra $2 per month to your insurance costs.
State laws don’t require auto loan companies to offer gap insurance when you finance a car. And the state bars lenders from requiring you to buy gap insurance as a condition of getting a loan.[1]
Here’s what you need to know about buying gap insurance in New York.
Quick Facts
Adding gap insurance to an existing policy with collision and comprehensive coverage typically only increases your annual premium by about $20, according to the Insurance Information Institute.
You can either buy gap insurance from a dealership or an insurance company.[2]
You’ll likely need to provide a police report and your lease or loan documentation in order to file a gap insurance claim.
How gap insurance works
A vehicle is a depreciating asset. Its actual cash value decreases as you drive it. If its value goes down faster than your loan balance, you may owe more than the car is worth — a situation known as negative equity. This can occur if you took out a loan for more than five years or didn’t put enough money down.
Car insurers base claims payout amounts on what vehicles are worth at the time of an accident. And they’ll pay it to your lien holder, not you.
If someone steals or totals your car, your insurance settlement may not be enough to pay off the full remaining balance on your loan. Gap insurance — also called guaranteed asset protection — repays any loan balance remaining after your auto insurance policy pays.
New York state law requires lenders and leasing companies to tell you in writing if they’ll hold you responsible for your full loan balance in case of a total loss.
What gap insurance covers in New York
Gap insurance covers the difference between the current value of your car and what you owe on your car. It doesn’t cover any medical bills or car repairs following an accident.[3]
For example: Let’s say you purchase a $30,000 car with a $27,000 loan and drive it for one year before you have an accident that totals your vehicle. You have collision coverage with a $500 deductible.
By the time of your accident, your car has depreciated in value by about 20%, so it’s now worth $24,000. Your collision coverage will pay out $23,500.
You’ve made some payments on your auto loan but still owe $26,000 at the time of your accident. Gap insurance can cover the difference between what your vehicle is worth and your remaining loan balance. In this scenario, your policy would cover the $3,000 gap.
Best gap insurance companies in New York
You have several options to choose from when buying gap insurance in New York. Here’s a list of the best insurance companies in New York that offer the coverage.
Allstate
| 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. | $105/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. | $180/mo |
3.8
A solid option in New YorkBased on 10,835 verified driver reviews and ratings
Allstate's score | Industry average | |
|---|---|---|
| Coverage options | 3.8 | 3.2 |
| Customer service | 3.8 | 3.6 |
| Discounts | 3.8 | 2.9 |
| Policy transparency | 3.7 | 3.1 |
| Value | 3.3 | 2.9 |
How drivers feel about Allstate
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.
Based on analysis of verified reviews collected by Insurify
Best in New York for
Showing 31 reviews from New York driversSee all 4,452 Allstate reviews
Verified Review
Reviewed in New York on May 12, 2026
I have questions about my rate after 50 years with Allstate and no traffic infractions or claims in more years than I can remember. My car is 14 years old with very high mileage, and I requested to cancel any collision coverage, yet my rate went up again this year. I'm exploring other companies since no one from Allstate responds to me.
Verified Review
Reviewed in New York on May 5, 2026
Very expensive.
Verified Review
Reviewed in New York on April 11, 2026
I've been with Allstate for 30-40 years. I have absolutely no problem with the office, but my circumstances have changed. Since 2016, I became a widow and I need the prices to be much lower.
…
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
636
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.02
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
The Allstate Guaranteed Asset Protection Program is available through some dealers, and you’ll have to add it at the time you buy your vehicle as an add-on to your financing agreement.
You can add Allstate’s gap coverage for loans for both new and used vehicles financed for up to 96 months. In case of a total loss, Allstate will pay your auto insurance deductible (up to $1,000) and up to $50,000 of your loan balance.
Pros
Available for both new- and used-vehicle purchases
Pays up to $1,000 toward your auto insurance deductible
Cons
Can only add when you buy the car
Must work with a dealer to obtain the coverage
Progressive
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 622 |
|---|---|
| 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. | $200/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. | $371/mo |
How drivers feel about Progressive
Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.
Based on analysis of verified reviews collected by Insurify
Best in New York for
Showing 44 reviews from New York driversSee all 8,542 Progressive reviews
Verified Review
Reviewed in New York on May 28, 2026
Since I've been with them, I have not gotten into any accidents, yet my rate rose by $100.
Verified Review
Reviewed in New York on May 27, 2026
Amazing
Verified Review
Reviewed in New York on May 17, 2026
Not great at all. My quote gets higher with every policy renewal. No accidents, no tickets, great driving record, yet it still gets higher!
…
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.97
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
Progressive doesn’t sell traditional gap insurance. Instead, it offers loan/lease payoff coverage. You can add this coverage to your existing full-coverage Progressive policy on any vehicle you finance or lease. Loan/lease coverage will pay toward your loan or lease balance, but no more than 25% of your vehicle’s value.
Pros
Can add to your full-coverage policy with Progressive
Many optional add-ons, including roadside assistance, trip interruption, and vehicle protection
Cons
Payout capped at 25% of vehicle value
Payout cap may be less in some states
Travelers
| 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. | $85/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. | $147/mo |
4.6
Best choice in New YorkBased on 1,512 verified driver reviews and ratings
Travelers's score | Industry average | |
|---|---|---|
| Coverage options | 4.7 | 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 York for
Showing 8 reviews from New York driversSee all 610 Travelers reviews
Verified Review
Reviewed in New York on May 3, 2026
Charges too much for coverage.
Verified Review
Reviewed in New York on May 3, 2026
In the last couple of years, I have noticed that I have been getting customer service reps who are not American and not as good. The American reps were more informed and easier to understand. So I have been bypassing the CSRs and asking for an agent now instead if I have an inquiry.
Verified Review
Reviewed in New York on March 19, 2026
Too expensive, the price just jumped too far! I have no accidents or tickets! I pay extra early and still not recognized for any of it! No claims, nothing!
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 loan/lease gap coverage. If you total your vehicle, it covers the difference between the value of your car and what you still owe. Travelers’ gap coverage is only available for new cars, and you must buy your vehicle from a dealer to be eligible for Travelers’ gap product.
Pros
New-car replacement coverage also available
Get a quote online, through an agent, or by phone
Cons
Not available for used cars
May not be available in every state
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 this data, Insurify is able to offer drivers insight into how companies price their car insurance premiums. The data included on this page represent averages across ages, genders, credit scores, and driver profiles for New York drivers.
Gap insurance vs. full coverage
Full-coverage auto insurance adds collision and comprehensive coverages to basic liability insurance. The coverages can pay to repair physical damage to your vehicle. Full coverage may also include medical payments coverage.
While you can have a full-coverage policy without gap insurance, you’ll never have gap insurance without full coverage. That’s because lenders and leasing companies typically require drivers to buy full-coverage policies to protect their investment.
Here are key differences between gap insurance and full coverage:
Coverage Type  | Pays for | Pays to | Stands Alone? |
|---|---|---|---|
| Full coverage | Cost to repair or replace damaged vehicle, up to policy limit | Insured (in case of repairs) or leasing company/lien holder (in case of total loss) | Yes. You don’t need to buy gap insurance to get full coverage. |
| Gap insurance | Outstanding loan/lease balance above full-coverage payout amount (limits may apply) in case of total loss | Leasing company or lien holder | No. You can’t buy gap insurance without full coverage. |
Who needs gap insurance in New York?
New York law doesn’t require drivers to purchase gap insurance, but your financial institution or dealership might. Some drivers should consider purchasing gap insurance for more financial protection.
You should consider purchasing gap insurance if you:
Took out a long-term car loan of more than 60 months
Made a small down payment
Rolled negative equity from an old vehicle loan into a new car loan
Have a lease and the auto lender requires it
Have a vehicle known for depreciating quickly
Drivers who made a large down payment or secured a car loan for 60 months or less don’t typically need gap insurance. But drivers who are risk-averse and prefer buying additional coverage can benefit from the confidence and peace of mind gap insurance provides.
Dan Stous, a certified financial planner (CFP), explains that dealerships often try to get you to purchase add-on products that aren’t useful when you’re buying a new car.
“Gap insurance is one of those products that is actually something to consider,” he says. Stous explains gap insurance can also benefit drivers without a lot of personal cash.
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How to buy gap insurance in New York
The most affordable way to buy gap protection in New York is to call your insurance agent and add the coverage to your existing car insurance policy. You can purchase a stand-alone policy through a car dealership or a lender, but it’s typically cheaper to buy the coverage as an add-on with your car insurance company.
The cost of gap insurance in New York varies based on your driver profile, vehicle type, and insurer. Adding gap insurance to your policy typically costs between $20 and $40 annually, but it can cost more if you buy it separately through a dealership or lender.
Gap insurance in New York FAQs
If you still have questions about gap insurance in New York, the following information should help you decide whether you should buy this coverage.
How does gap insurance work in New York?
Gap insurance in New York works the same as it does in any other state. You’ll typically buy the coverage when you purchase a car that you’re financing or when you lease a vehicle.
In case of a total loss due to an accident or theft, gap insurance in New York will pay the difference between your insurance settlement amount and your loan or lease balance. Depending on the insurer, the gap payout amount may be limited.
Is gap insurance a good idea?
It depends. If you owe more on your vehicle than its actual cash value, gap insurance is a good idea. New York insurance law doesn’t allow lenders to require you to buy gap insurance. They can (and typically do) require you to buy a full-coverage policy.
Since you’re already paying for full coverage, it makes sense to spend a bit more to protect yourself from a big bill if your vehicle is totaled or stolen.
Does GEICO offer gap insurance in New York?
No. GEICO doesn’t currently offer gap insurance — in New York state or anywhere else. If you have GEICO for your full-coverage car insurance policy, you’ll have to look elsewhere for gap insurance.
Do you need gap insurance for a used car?
More than half of all used car purchases are financed in the U.S. Vehicles depreciate the most — as much as 20% — during the first year. But you may still end up owing more than your used car’s actual cash value.
If you took a long repayment term, put little or no money down, or financed at a high interest rate, it could be a good idea to buy gap insurance for your used car.
Sources
- New York State Department of Financial Services. "OGC Opinion No. 08-03-20."
- What is GAP Insurance: Everything You Need to Know. "Kelley Blue Book."
- Insurance Information Institute. "What is gap insurance?."
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Written byCatherine Collins
Catherine Collins
13+ years creating insurance and personal finance content
Published author in financial education
Featured in
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
David MarlettAdvisor