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Best Cheap Gap Insurance Companies in New York: Quotes, Discounts (2022)

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Lindsay Frankel

By: Lindsay Frankel

Edited by Tanveen Vohra | Reviewed by licensed insurance agent, Amber Benka

Last Updated June 15, 2022

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

Gap Insurance in New York

If you have a new car, you might need a more robust insurance policy that includes gap insurance. Not all insurance providers in New York offer gap insurance, and prices vary from one company to the next. If you’re looking for cheap gap insurance in the Empire State, your best bet is to compare insurance quotes from multiple companies with Insurify.

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Best Companies for Gap Insurance in New York

How much is gap insurance in New York?

The average policyholder in New York pays $324 per month for a car insurance policy with gap insurance. However, what you pay for car insurance will depend on a variety of factors, such as your age and your driving record.

Not all insurance companies in New York offer gap insurance, and some providers offer cheaper rates overall for drivers who lease than others. Below, you’ll find the top providers of gap insurance in New York, along with the average premiums drivers who lease pay for a policy.

Insurance CompanyAverage Monthly Cost for Leased Cars in New York
Travelers$208
Plymouth Rock$261
Midvale$295
Progressive$309
Liberty Mutual$479
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

You can also get gap insurance coverage in New York from Allstate or Nationwide.

See More: Cheap Car Insurance in New York

What is gap insurance?

Gap insurance, also known as guaranteed asset protection, is a type of optional insurance coverage that protects you if you owe more on your vehicle loan than what your car is worth. This can happen if your car is totaled or stolen when it is still relatively new. Here’s how it works.

According to Carfax data, new cars depreciate more than 10 percent within the first month after driving off the lot. Let’s say you took out a $19,000 loan to pay for a $20,000 car. A month later, your car is declared a total loss, and the Kelley Blue Book value is $17,000. You’d receive $17,000 minus your deductible from your insurer to cover your $19,000 of debt.

Gap insurance covers the difference. While you’d owe $19,000 (the full amount of the loan) without gap insurance, you’d only owe the value of your car if you chose to purchase gap coverage.

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Who should buy gap insurance in New York?

Gap insurance is typically only available for vehicles that are two to three years old or newer. It’s especially important to have gap coverage in New York if you made a small down payment when you purchased your new car or took out a car loan with a term longer than 60 months. That’s because your car will most likely depreciate faster than you can pay down your loan.

You should also buy gap insurance if you had negative equity in a previous car loan and rolled it into your new loan amount. That’s because the value of your vehicle will immediately be less than what you owe your lender.

New York Gap Insurance Laws

In New York, state laws don’t require drivers to carry gap coverage or for insurance companies to offer it. However, some lenders in New York may require gap insurance as a condition of the auto loan. And lessors often require gap insurance coverage as a condition of the lease agreement if you lease a new vehicle as well.

How much gap insurance do I need in New York?

Gap insurance doesn’t come with coverage limits but rather covers the difference between what your comprehensive and collision coverage pay out and the amount you still owe on your loan. For the subsection of people who leased a new car or bought a new vehicle with a low down payment, this coverage can save your finances in the event of a total loss.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in New York

Just like in other states, gap coverage in New York is designed for people with new motor vehicles who expect depreciation to create a gap amount between their insurance payout and their outstanding debt. It’s an optional insurance product, but if at any time you would need the coverage to be able to replace your new vehicle, you should buy it.

Here’s an example of how gap insurance works:

  • You buy a $30,000 car with a $27,000 loan.
  • You get an insurance policy with a $500 deductible.
  • Your car is stolen after depreciating to $24,000. You’ve made some payments but still owe $26,500 on your loan.
  • Your comprehensive coverage pays out $23,500.
  • Without gap coverage, you’d owe your lender $26,500, including $3,000 out of pocket.
  • With gap coverage, you’d only owe the $500 deductible to your insurance company.

You’ll typically only need to pay for gap insurance for the first year or two, so be sure to cancel it once your car’s actual cash value is greater than the amount you owe on your car.

How Much Gap Insurance Costs in New York

The price of gap protection is based on your vehicle’s actual cash value (ACV), the age and location of your vehicle, and your auto insurance claims history. Rates also vary by insurer. Drivers who lease their cars in New York, who often carry gap coverage, pay an average of $324 for all coverages on their policy, according to Insurify proprietary data.

Adding gap coverage to your policy typically only costs $20 to $40 per year when you go through your insurance company. Buying gap insurance from the dealership or lender, however, can be costly. You’ll typically pay several hundred dollars wrapped into your loan.

See More: Average Cost of Car Insurance in New York

How to Buy Gap Insurance in New York

Since gap coverage doesn’t significantly change your annual premium, you’ll want to start by getting customized quotes for the cheapest car insurance policies that meet your needs. But you won’t need to call an insurance agency or spend hours getting quotes on individual insurance companies’ websites.

Instead, you can use Insurify to compare rates across national companies and local providers alike. You’ll just need to answer a few questions about your vehicle and driving history to get started, and our artificial intelligence technology will find the cheapest rates available to you in New York. From there, cross-reference your top choices with the best gap insurance providers.

Frequently Asked Questions: Gap Insurance in New York

  • No. Drivers are not required to carry gap insurance, nor are insurers required to provide it. Gap insurance is an optional car insurance coverage designed to protect owners of new vehicles from unaffordable loan costs.

  • If you pay in advance for gap coverage over the life of the loan and you pay off your car early, you can receive reimbursement for the portion of the gap insurance premiums that didn’t get used. However, you won’t get the full cost of gap coverage refunded. If you pay your premiums monthly, don’t expect any money back.

  • New York is the fourth most expensive state for car insurance, so getting a low premium can be a challenge. Luckily, you can easily compare customized quotes with Insurify to quickly find the cheapest car insurance rate available to you. You can even toggle between coverage limits and deductible amounts until you find a policy that fits your budget.

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  • The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

    Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

    With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Lindsay Frankel
Lindsay Frankel

Insurance Writer

Lindsay Frankel is a content writer specializing in personal finance and auto insurance topics. Her work has been featured in publications such as LendingTree, The Balance, Coverage.com, Bankrate, NextAdvisor, and FinanceBuzz.

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