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

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Charlie Mitchell

By: Charlie Mitchell

Edited by Jackie Cohen

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.

Whether you’re never caught outside of Philly or are a country mouse in the Alleghenies, driving is essential in Pennsylvania. And if you’re driving a new lease or just got a car loan, you’ll probably need gap coverage for your auto insurance.

Fuzzy on the concept? Read on, and spend a few minutes with Insurify to get a quote list with options from the nation’s top insurance companies. It’s the easiest way to find the best deal, plus, it’s fast, free, and secure.

See More: Compare Car Insurance

Best Companies for Gap Insurance in Pennsylvania

What companies sell gap insurance in Pennsylvania?

Many auto insurance companies in Pennsylvania offer gap insurance. Travelers offers the cheapest gap insurance on average, but if you choose to purchase gap insurance, check with your insurance provider to see if they offer a gap insurance add-on.

Because gap coverage is part of most auto insurance policies for leased vehicles (along with comprehensive coverage and collision coverage), we put together a list of companies with the most affordable quotes for gap insurance. These companies are a great starting point for finding the auto insurance you deserve that includes gap coverage.

Insurance CompanyAverage Monthly Cost for Leased Cars in Pennsylvania
Travelers$131
Progressive$139
Clearcover$149
Plymouth Rock$170
Midvale Home & Auto$189
Liberty Mutual$220
Direct General$223
Dairyland$242
SafeAuto$244
Bristol West$267
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

What is gap insurance?

The “gap” in gap insurance stands for “guaranteed asset protection.” The insurance covers the lender on your car loan—they’re guaranteed to get their full loan payment back even if the car is in a car accident or stolen and becomes a total loss. “Wait, you might ask, doesn’t my insurance coverage pay for a new vehicle since I’m required to have full coverage on my policy?”

Enter gap insurance. If your car is a total loss, your full-coverage insurance pays out the actual cash value of your car—but what if that’s not enough to pay off the loan? The lender still wants their money, and you don’t want to pay loan payments on a car that doesn't exist. That’s why gap insurance covers the difference—minus the deductible on your full-coverage policy.

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Who should buy gap insurance in Pennsylvania?

Only buy gap insurance if you need it. You usually only need gap insurance if you bought your new car with a long loan term and a small down payment. Even then, you won’t need gap insurance for the entire loan term—usually only a few years. Most dealerships and lenders require you to have gap insurance.

Consider gap insurance if:

  • Your lender requires it.
  • You’re leasing your vehicle.
  • You financed your vehicle loan over 60 months or more.
  • You put less than 20 percent down on your car (or didn’t make a down payment at all).
  • Your loan has a high interest rate.
  • You rolled over negative equity from your last auto loan.
  • You’re driving a luxury vehicle or other high-value vehicle that depreciates faster than a standard car.

Pennsylvania Gap Insurance Laws

Gap insurance isn’t required in Pennsylvania. In fact, the state has very low requirements for auto insurance. If you need gap coverage, it’s probably because the finance company that is handling your auto loan—usually a bank, credit union, or dealership—requires you to have it.

How much gap insurance do I need in Pennsylvania?

The amount of gap coverage you need depends on the actual cash value of your car—which is dragged down by depreciation the older it is and the more you drive it—and the remaining balance on your car loan. Some gap insurance coverage stops at 25 percent of your car’s value; some policies stop at 50 percent. Ask your insurance agent what makes sense for you.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Pennsylvania

It’s cheaper to buy gap coverage as part of a car insurance policy—not à la carte in the form of gap waivers, the way lenders and dealerships like to offer it. Policyholders with an auto insurance policy can benefit from the savings that come with using one insurance company for homeowners and car insurance. So adding gap insurance just helps the savings pile up.

How Much Gap Insurance Costs in Pennsylvania

In Pennsylvania, it costs $227 per month on average to insure a leased vehicle with full coverage (liability coverage, collision insurance, comprehensive coverage). That makes Pennsylvania a relatively affordable state: the national average to insure the same vehicle with full coverage is $289 per month.

See More: Average Cost of Car Insurance in Pennsylvania

How to Buy Gap Insurance in Pennsylvania

Lenders and finance companies that finance your car loan will try to sell you gap coverage as well. Take a look, but know it’s not required, and most every driver is better off using an insurance company for their gap coverage. P.S.: A gap waiver is the same thing, and if you have a gap waiver on your loan, you don’t need gap insurance.

When you get a quote from one insurance company, it’s almost never going to be the best rate you could find. The auto insurance landscape is too complex and diverse. To find the gap insurance policy that meets your needs and has the rates that fit your budget, Insurify is the way to go. Instead of one quote at a time, you can get a free list of killer quotes in mere minutes!

Frequently Asked Questions: Gap Insurance in Pennsylvania

  • While Pennsylvania law never requires you to purchase gap insurance, your lender very often does. Gap insurance coverage is often a mandatory component of most auto loans and leases. Pennsylvania requires liability insurance, including bodily injury and property damage protection, and notably doesn’t require personal injury or uninsured/underinsured motorist coverage.

  • You can drop your gap insurance the minute your car loan isn’t “underwater” anymore—that is, your loan payments have caught up with the car’s value, and the outstanding balance is less than the car’s actual cash value (ACV). If you’ve paid your gap insurance on an annual basis, you should get your money back prorated. Just notify your insurance company promptly.

  • Finding the right auto insurance policy for your new car or lease is a critical financial decision. Not only do you need a low rate, but you also need to make sure your policy is high quality. Residents of the Commonwealth, from the Delaware River to Lake Erie, should take advantage of Insurify. Gap insurance or not, you’ll get personalized rates and exclusive deals for free, in minutes.

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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.

Charlie Mitchell
Charlie Mitchell
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Insurance Writer

Charlie Mitchell is a journalist, researcher, and writer specializing in personal finance subjects. He holds a degree from Middlebury College. His work can be found in Vox, Mother Jones, The New Republic, and other publications. Charlie uses his expertise in home, renters, and auto insurance subjects to help inform people to make better financial decisions. Connect with Charlie on LinkedIn.

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