120+ more)
)
16+ years in personal finance and insurance writing
Certified Financial Education Instructor
)
)
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
){kind=small}
){kind=small}
)
)
Updated
More than 31% of drivers in New York have an active loan or lease on their vehicle, which makes gap insurance, or guaranteed asset protection, a smart purchase. In the case of a stolen or totaled car, gap insurance covers the difference between the amount you owe on your loan or lease and your payout from your insurance company.
Here’s what you need to know about gap insurance in New York, including how it works, what it covers, how much it costs, and the best insurance companies for it.
More than 31% of drivers in New York lease or finance their vehicles, according to Insurify data.
Out of all car insurance claims filed, the U.S. has a 23% total vehicle loss frequency.[1]
Erie, USAA, and Travelers are the cheapest insurers in New York for gap coverage.
Comparing quotes from auto insurers that offer gap insurance can help you find the right insurance policy for you at a rate that fits your budget.
The table below shows three of the best insurers in New York for gap insurance, along with average monthly gap insurance quotes.
Gap Insurance Company  | Average Monthly Quote | Best For |
|---|---|---|
| Erie | $3 | Low rates |
| USAA | $3 | Military and veterans |
| Travelers | $4 | Flexible coverage |
| User Reviews | 4.4 |
|---|---|
| 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. | $71/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. | $116/mo |
Erie Insurance's score | Industry average | |
|---|---|---|
| Coverage options | 4.2 | 3.2 |
| Customer service | 3.6 | 3.6 |
| Discounts | 3.8 | 2.9 |
| Policy transparency | 4.0 | 3.1 |
| Value | 3.7 | 2.9 |
Customers appreciate the insurer’s excellent customer service and quick claim handling but are dissatisfied with the unexpected and unexplained rate increases. Some also found the policy details hard to understand.
Erie has two options for gap insurance. Erie’s New Car Protection will replace your totaled vehicle with a new one of the latest model year, while its Better Car Protection will replace it with a vehicle two years newer.
Plus, Erie offers the lowest average gap insurance rates in New York, making it affordable for more drivers. The insurance company has a wide network of agents in the Empire State who can help you find the right coverage for your needs.
Lowest average rates for full coverage with gap insurance in New York
Highest J.D. Power rating for auto claims satisfaction
Wide range of local agents in New York
Can’t buy a policy completely online
Poor Trustpilot rating
AM Best recently downgraded Erie’s financial strength rating from A+ (Superior) to A (Excellent)
| User Reviews | 4.9 |
|---|---|
| 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. | 9.1 /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. | $74/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. | $121/mo |
USAA's score | Industry average | |
|---|---|---|
| Coverage options | 4.9 | 3.2 |
| Customer service | 4.8 | 3.6 |
| Discounts | 4.9 | 2.9 |
| Policy transparency | 4.9 | 3.1 |
| Value | 4.9 | 2.9 |
Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.
USAA offers a type of coverage called car replacement assistance. Unlike gap insurance, which covers the difference between the car’s value and the amount you owe on your car loan, USAA’s car replacement assistance simply pays out 20% more than your car’s actual cash value (ACV) if you total it or someone steals it.
Affordable rates for full coverage with gap insurance in New York
Second-highest J.D. Power rating for auto claims satisfaction
Unique benefits for military and veterans
Available only to active-duty military, veterans, and eligible family members
No local agents in New York
No 24/7 customer service
| 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. | $87/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. | $142/mo |
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 |
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.
Travelers offers loan/lease gap insurance that covers the difference between your car’s ACV and the unpaid balance of your loan or lease.
You can also choose new-car replacement coverage, which replaces your car with a new one of the same make and model during the first five years of ownership. And rates are relatively cheap in New York, making this coverage with Travelers a smart buy.
Numerous additional coverage types available in New York
Also offers extended new car replacement coverage
Many car insurance discounts available in New York
Below-average J.D. Power rating for auto claims satisfaction
Poor Trustpilot rating
Not the cheapest gap insurance rates in New York
Gap insurance helps protect drivers in New York who have car loans or leases. If you total a relatively new car, the insurance payout amount may be less than you owe on your loan or lease.[2] Gap insurance covers the difference between your car’s ACV and the amount you owe your lender.
Here’s how it works:
Your insurer totals your car. After an accident, your insurance company determines that the cost to repair your vehicle exceeds its worth.
Your primary insurance pays ACV. If you have the necessary collision or comprehensive coverage, your insurer pays the ACV of your vehicle, which may be less than you owe.
Gap insurance pays the rest. Your gap insurance makes up the difference, so you don’t have to pay the remaining loan or lease balance out of pocket.
Compare rates from the nation’s leading insurance companies
The cost of gap insurance varies depending on where you buy it from. Adding gap insurance to a full-coverage policy in New York costs an extra $3–$12 per month, on average. A standard full-coverage policy costs an average of $243 per month in New York.
Buying gap insurance from a car insurance company is typically cheaper than buying it from a car dealership or lender.
Gap insurance covers the difference between your vehicle’s actual value and your outstanding loan or lease amount if you total your car.
You finance a $50,000 car. After two years, it has a depreciated value of $35,000 and a remaining loan balance of $38,000. If you total your car and have a full-coverage policy, your auto insurer should cover your car’s ACV of $35,000. Gap insurance would then kick in to pay the additional $3,000 on your loan and keep you from having to dip into savings.
The table below breaks down what gap insurance covers after a total loss or vehicle theft.
What Gap Insurance Covers | What Gap Insurance Doesn’t Cover |
|---|---|
| Remaining loan balance | Vehicle repairs, maintenance, or mechanical issues |
| Lease payoff gap | Bodily injury or property damage |
| Theft-related payoff gap | Your deductible |
| Negative equity | Unpaid fees or interest for your auto loan or lease |
Full-coverage car insurance includes collision coverage and comprehensive coverage to help pay for repairs to your own vehicle after an accident, in addition to higher liability insurance limits. But full-coverage insurance won’t cover the difference between your car’s ACV and your remaining loan balance in the event of a total loss.
Gap coverage, which you can buy as a separate policy or an add-on, provides the additional coverage you need to avoid out-of-pocket costs if an accident totals your car. Ultimately, you may need both gap insurance and a full-coverage policy.
The table below breaks down what full coverage and gap insurance cover, respectively.
Coverage Feature | Full Coverage | Gap Insurance |
|---|---|---|
| Covers repairs | Yes | No |
| Covers the loan gap | No | Yes |
| Covers injuries | Yes | No |
| Covers vehicle theft | Yes | Yes |
| Covers accidents that don’t total your car | Yes | No |
New York state law doesn’t require drivers to purchase gap insurance, but it does require lenders to offer it in certain circumstances.[3]
Regardless of what the law says, gap insurance can be beneficial for new vehicle purchasers in the following scenarios:
You made a down payment of less than 20% on your car.
You took out a long-term vehicle loan of 60 months (5 years) or longer.
You’re leasing your vehicle.
The car you purchase has a faster depreciation rate than average.
You rolled over negative equity from a previous car loan into your new loan.
New York ranks fifth in the nation for car thefts by volume, with 11,720 thefts in the first two quarters of 2025, according to National Insurance Crime Bureau data. Since gap protection covers vehicle theft, adding it to your policy makes financial sense.
If you bought a used car, paid cash, or took out a shorter loan with a larger down payment, you can typically get away without buying gap insurance.
Insurify partners with 120+ top insurers for real quotes
You can usually buy gap insurance in New York from the dealership, your insurer, your financial institution, or your lender. That said, New York law prohibits dealers or lenders from requiring gap insurance as a condition of your lease or loan.
Below, you can compare the pros and cons of different ways to buy gap insurance coverage.
Gap Insurance Source | Pros | Cons | Add-On or Stand-Alone? |
|---|---|---|---|
| Car dealership |
|
| Stand-alone |
| Auto insurance company |
|
| Add-on to existing full-coverage policy |
| Bank |
|
| Stand-alone |
| Credit union |
|
| Stand-alone |
| Online insurer |
|
| Stand-alone or add-on |
Having a full understanding of gap insurance in New York can help you find the best coverage for your needs. The following information can help answer your remaining questions.
No. New York drivers don’t legally need gap insurance, and lenders or dealers can’t make gap insurance a condition of your car lease or loan. But if you have a vehicle loan or lease, it may be a good idea to add the coverage to your auto policy for financial protection in the event of total vehicle loss.
A gap insurance add-on costs between $3 and $12 per month in New York. The average cost of full-coverage insurance in New York is $243 per month. You’ll have to decide whether the extra protection is worth the extra cost of several dollars each month.
New York gap insurance can cover the difference between your vehicle’s value and your outstanding auto loan amount if someone steals or totals your car. After you make a claim, your insurer pays out your car’s ACV, and gap insurance covers the difference so you can pay off your loan or lease.
The main benefit of having gap insurance in New York is that you won’t need to pay out of pocket to pay off your remaining auto loan balance if an accident totals your car.
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
16+ years in personal finance and insurance writing
Certified Financial Education Instructor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
