Gap Insurance in New York (2024)

Gap insurance pays off the balance of a lease or loan if your vehicle is totaled or stolen.

Catherine Collins
Catherine Collins

Catherine leverages her background in education and finance to write articles that help readers make informed decisions about their insurance and finances.

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Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

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Updated July 14, 2024

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Cheapest recent rates in New York

Drivers using Insurify have found quotes as cheap as $126/mo for liability only and $181/mo for full coverage in New York.

*Quotes generated for Insurify users from New York within the last 10 days. Last updated on July 11, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from July 11, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users from New York within the last 10 days. Last updated on July 11, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from July 11, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

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.

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.

What is gap insurance, and how does it work in New York?

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. Negative equity 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.

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

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User Reviews
3.2
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.
$63/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.
$138/mo

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

Read more driver reviews of Allstate
Jennie - July 14, 2024
Verified

Cain Insurance is Great!

Cain Insurance has always been fair to me and my late husband.

Brice - July 13, 2024
Verified

Disappointed with Allstate

I would never continue a relationship that is supposed to be mutually beneficial for an extended period of 13 years, knowing that they never had my best interest at heart. They may mislead you to add onto your coverage by promising that if you have to utilize that benefit, it will offer you certain advantages. However, when you attempt to utilize an endorsement that costs you additional money on your premium, it offers nothing that they used to upsell that endorsement. With Allstate, it feels like you're in the hands of a company that prioritizes its own interests.

Anthony - July 13, 2024
Verified

Difficulties with Allstate's Phone Service

The telephone service is poor; it's hard to speak to anyone knowledgeable.

Liberty Mutual

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User Reviews
2.9
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.
7.7/10
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.
$190/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.
$276/mo

Liberty Mutual offers gap insurance, but you can only buy it when you purchase your car, and you only qualify for coverage if you’re the first owner of your car. The company also offers better car replacement and new-car replacement add-ons.

If you total your vehicle in an accident, Liberty Mutual’s better car replacement policy will give you money to purchase a car one year newer with 15,000 fewer miles on it. New-car replacement will pay for the same make and model if your car is stolen or totaled within the first year or before you reach 15,000 miles.

Pros
  • May be cheaper if you buy through insurer

  • Optional insurance products to help buy a new vehicle

Cons
  • Must buy when you purchase your car

  • Few details about the coverage on Liberty Mutual’s website

Read more driver reviews of Liberty Mutual
Wanda - July 13, 2024
Verified

Wanda

Excellent company.

Melinda - July 13, 2024
Verified

Stay Away from Liberty Mutual

Liberty Mutual starts out with reasonable rates, but then the rates double.

John - July 13, 2024
Verified

Fair

They raised my premium to a point where I could not afford it.

Nationwide

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User Reviews
3.3
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.
8.7/10
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.
$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.
$186/mo

Nationwide offers gap insurance that you can easily add to an existing collision insurance policy. Nationwide’s gap insurance coverage is available for vehicles 6 years old or newer.

Pros
  • Available for used cars

  • Can purchase coverage through a Nationwide agent

Cons
  • Won’t pay your full-coverage car insurance deductible

  • Not available in every state

Read more driver reviews of Nationwide
Sharon - July 12, 2024
Verified

Great customer service but premiums kept going up

The firm I dealt with was awesome, but my rates kept going up without explanation, so I had to let them go.

Patrice - July 8, 2024
Verified

So-so Service

It's so-so. It's entirely too expensive.

Nestor - July 8, 2024
Verified

After being with Nationwide for over 44 years, they drastically raised my rates. How do you think I feel? How would you feel? I feel betrayed by my experience.

After being with Nationwide for over 44 years, they drastically raised my rates. How do you think I feel? How would you feel? I feel betrayed by my experience.

Progressive

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JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
819
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.
8.4/10
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.
$234/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.
$328/mo

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

Read more driver reviews of Progressive
Robert - July 14, 2024
Verified

Half a Loaf

They bundled auto and home insurance, but after 8 years, they dropped our home insurance.

Quincy - July 14, 2024
Verified

My Experience

The adjustment department needs some improvement. I filed a claim and a lot of damages were overlooked. I had to make several calls to get the damages covered. What was supposed to be a two-week job has turned into a month and a half ordeal. I'm still waiting on my car. The customer service from all involved has been terrible at this point. I'm definitely looking forward to switching companies.

Matthew - July 14, 2024
Verified

Progressive's Prices are Way Too High

I am priced way too high.

Travelers

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User Reviews
3.5
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.
9.0/10
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.
$382/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.
$538/mo

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

Read more driver reviews of Travelers
Linda - July 10, 2024
Verified

Final

Dealing with the computer-generated documents is trouble for me.

Janet - July 9, 2024
Verified

Fair

They increased my insurance after 6 months, even though I had no tickets or accidents.

Kim - July 9, 2024
Verified

Nickel and Dimed

Travelers was awful. They offer discounts, but only if you go paperless and there are little caveats that my agent never informed me about. Also, they increased my rates significantly without notice.

  • 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.

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.

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.

For example: Let’s say you purchase a $30,000 car with a $27,000 loan and drive it for a 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.

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 TypePays forPays toStands Alone?
Full coverageCost to repair or replace damaged vehicle, up to policy limitInsured (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 insuranceOutstanding loan/lease balance above full-coverage payout amount (limits may apply) in case of total lossLeasing company or lien holderNo. 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.[5] 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 of their own.

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How much gap insurance costs in New York

The cost of gap insurance in New York will vary 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.

You can see the average monthly cost of insurance for leased cars from New York insurers below. The following table shows average full-coverage car insurance rates for leased vehicles covered by top insurers in New York.

Insurance CompanyAverage Cost for Leased Cars in New York
CSAA$221
Safeco$238
Midvale Home & Auto$305
Liberty Mutual$313
Progressive$395
Bristol West$509
Erie$532
USAA$554
Travelers$647
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

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

Catherine Collins
Catherine Collins

Catherine Collins is a freelance financial writer and author based in Detroit. She's the co-founder of MillennialHomeowner.com and MomsGotMoney.com, and author of the book Mom’s Got Money: A millennial mom’s guide to managing money like a boss. She has written for US News, Huffington Post, Money, Business Insider, Investopedia, Entrepreneur, Go Banking Rates, and many other publications. She currently resides in Detroit, Michigan with her boy-girl twins and a rescue dog named Julep.

Evelyn Pimplaskar
Edited byEvelyn PimplaskarEditor-in-Chief, Director of Content
Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

Featured in

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