Gap Insurance in Utah (2024)

Even though Utah doesn’t require gap insurance, it might be a good idea if you lease or finance a car. Here are the best insurers in the state.

Taylor Milam-Samuel
Taylor Milam-Samuel
  • 8+ years writing for major outlets, including MarketWatch and Business Insider

  • Master’s in Education

Taylor Mlam-Samuel is a personal finance writer and credentialed educator. When she’s not helping readers better save and spend money, she can be found teaching.

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Sara Getman
Edited bySara Getman
Sara Getman
Sara GetmanAssociate Editor

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga and crocheting.

Updated July 25, 2024

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If your car is totaled, auto insurance will likely pay the vehicle’s actual cash value (ACV) for your claim. But if you leased or financed your car, you may owe more on it than its ACV. Gap insurance covers the difference between what your car is worth and how much you owe on the loan or lease. 

Gap insurance also might make sense if you made a small down payment or have a long repayment term. Here’s what you need to know about gap insurance in Utah, including the best insurance companies for this important type of coverage.

Quick Facts
  • Gap insurance coverage is usually affordable, and drivers pay about $20 per year for gap insurance.[1] 

  • If you lease or finance a car, your leasing company or lender might require you to have gap insurance coverage.

  • Gap insurance is an add-on policy, and it’s not part of a full-coverage or liability-only plan.[2]

What is gap insurance, and how does it work?

Gap insurance stands for “guaranteed asset protection.” It covers the difference between your car’s actual cash value and the amount you owe on it.

For example, imagine you finance an SUV and have a $40,000 loan. One year later, you still owe $35,000 for the car, and you get in a bad accident and total it. The appraiser determines that the current value of your car is $30,000, which is what your insurance company will pay your finance company. You must find a way to pay the remaining $5,000 that you owe the lender. Gap insurance would cover the remaining $5,000, allowing you to pay off your loan.

What gap insurance covers in Utah

Gap insurance pays the difference between what your car is currently worth and the amount you still owe if a covered event totals your car. It won’t cover normal wear and tear, mechanical breakdowns, or any claims your insurer doesn’t cover. 

Gap insurance is most useful if you lease or finance a car and owe a lot of money on the vehicle, have a high-value car, or a long loan term.[1]

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Gap insurance vs. full coverage

​​Full-coverage policies don’t include gap insurance. Drivers in Utah must have the minimum amount of liability insurance, which includes bodily injury liability, property damage liability, and personal injury protection.[3]

Full-coverage car insurance includes the minimum amount of liability insurance, plus comprehensive and collision coverage – but it doesn’t include gap coverage. Comprehensive and collision insurance will cover various types of damage to your vehicle. 

Gap insurance is typically an optional, add-on coverage, and whether you need it depends on how you pay for your car. If you have a high-value vehicle, owe a lot of money on your car, or finance or lease your vehicle, choosing full coverage and gap insurance might make sense.

Who needs gap insurance in Utah?

The state of Utah doesn’t mandate gap insurance coverage. But if you lease or finance a car, your leasing company or lender might require you to have it. Check with your lender about gap insurance requirements.

In most cases, drivers in the following situations would benefit from gap insurance:

  • illustration card https://a.storyblok.com/f/162273/150x150/1f77dd73f2/money-96x96-orange_042-invoice.svg

    Small down payment

    If you finance a car with a down payment of less than 20%, you’ll likely benefit from gap insurance. Small down payments often mean owing more than the car is worth.

  • illustration card https://a.storyblok.com/f/162273/150x150/1d8803fded/credit-and-loan-96x96-blue_019-calendar.svg

    Long repayment term

    Financing a car with a repayment term of 60 months or longer means there’s a higher chance that you’ll owe more than the car is worth.

  • illustration card https://a.storyblok.com/f/162273/150x150/3a662e9efd/credit-and-loan-96x96-green_006-credit.svg

    Vehicle lease

    Most lenders require gap insurance for vehicle loans. The lender still owns the vehicle throughout the finance term and usually wants to protect its asset.

  • illustration card https://a.storyblok.com/f/162273/150x150/e80d4ae197/car-and-driving-96x96-gold_019-car.svg

    Brand-new vehicle

    New vehicles depreciate quickly. Recent research shows that new cars lose 20% of their value within one year. Because of that, gap insurance might be a good idea.[1]

  • illustration card https://a.storyblok.com/f/162273/150x150/13c17bd678/car-service-96x96-orange_027-car-lift.svg

    Negative equity from an old loan

    Some lenders allow borrowers to roll the balance of an old loan into a new one, which causes the new loan to be upside down. When a loan is upside down, you owe more than the collateral is worth. Gap insurance can protect you financially if something happens to the car.[1]

Gap insurance isn’t always practical. You probably don’t need it if you don’t have a loan or lease on your car. You can also skip the additional coverage if your vehicle isn’t worth much or you have a low loan balance.[1]

If you’re not sure whether you need gap insurance, consult with a car insurance agent or auto loan lender for more information.

How to buy gap insurance in Utah

You can work with a car dealership or insurance company to buy gap insurance in Utah. Even though you can purchase coverage from the dealership where you buy your car, buying it through your insurance company is usually cheaper.

Drivers can add gap insurance as an add-on policy, and it usually costs less than $20 per year. Most major insurance companies offer gap insurance, but double-check with the insurer before securing a policy.[1]

Best gap insurance companies in Utah

Gap insurance is usually inexpensive, costing an average of $20 per year. The following insurance companies offer the most competitive rates for coverage.

USAA

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User Reviews
3.7
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.
9.4/10
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.
$65/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.
$96/mo

USAA consistently ranks as one of the top insurers in the country, and it offers many different insurance products. Drivers with USAA can opt for new car replacement insurance, which is similar to gap insurance but more robust. New car replacement coverage covers the cost of your car loan or lease. Plus, the policy pays an additional 20% that you can use for any expense, including a down payment for a new car.

But USAA only serves active-duty military members, veterans, and their immediate families, so not everyone will qualify to buy insurance from the company.

Pros
  • Low premiums

  • SafePilot program rewards good driving with up to 30% discount

Cons
  • Only available to active-duty military, veterans, military spouses, or children of service members or veterans

  • No 24/7 customer phone support

Read more driver reviews of USAA
Charles - July 23, 2024
Verified

Average

The rates are way too high.

Ralph - July 22, 2024
Verified

No Answer

There is no senior discount available.

Wilfred - July 22, 2024
Verified

Issues Encountered with USAA

A few years ago, a minor male bicyclist collided with my car, which my wife was driving at the time. She was leaving a large intersection with a green light when the bicyclist, who was riding in a pedestrian lane, appeared from behind a stopped box truck that obscured his approach. The local police department in Belmont, MA, was called and the Traffic Control Officer wrote up the accident report, clearing my wife of any responsibility. I forwarded this report to USAA. However, when I applied for increased motor vehicle insurance coverage about a year later, I was denied. USAA cited the accident with the bicyclist as a chargeable accident against my wife, despite the police report, and they had never informed us about this. I was never able to resolve this issue. Another incident occurred on December 14, 2023. I wired $60,000 to USAA for a 7-month CD and received a receipt acknowledgment. However, on the same day, the deposit was withdrawn without any direct notice to me, except for a normal monthly bank statement reflecting the withdrawal without any explanation in mid-January. It took about 9 days for USAA to resolve the issue and return the $60,000. This was a very stressful 9 days for me, and I never received an apology or explanation. Trying to reach someone with authority through numerous phone calls was literally impossible. It took a two-page business letter with 7 enclosures to get the CEO's right-hand woman to take action and return the $60,000 to my credit union. As for insurance rates, we own, register, and insure two cars that are driven about 10 miles per week on average, sometimes 100 miles on a Saturday to visit our daughter. However, it seems that we do not receive any discount for this.

Auto-Owners

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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.
8.5/10
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.
$79/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.
$117/mo

Auto-Owners offers low-cost gap insurance for financed or leased cars. Known for competitive rates and excellent customer service, Auto-Owners is a great pick for a straightforward gap insurance policy. The coverage will pay the difference between your car’s value and what you owe.

Pros
  • High customer satisfaction

  • Multiple discounts

Cons
  • Only available in 26 states

Read more driver reviews of Auto-Owners
Paula - July 23, 2024
Verified

Auto Owners Review

They do not offer savings for low mileage!

Angela - July 23, 2024
Verified

The person I spoke with was very helpful and polite, and did her best to get my rate as low as possible.

The person I spoke with was very helpful and polite, and did her best to get my rate as low as possible.

Kevin - July 2, 2024
Verified

Great, Except for the Price

I recommend checking prices with other providers.

Progressive

Compare personalized, real-time quotes
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.
$92/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.
$136/mo

Progressive is one of the largest insurance companies in the nation and offers loan/lease payoff coverage, which is slightly different from gap insurance. Progressive’s coverage helps cover the remaining balance on your loan or lease for up to 25% of the vehicle’s value.

Pros
  • Rewards for good drivers

  • Numerous coverage options and discounts available

Cons
  • Higher-than-expected amount of complaints

  • Ranked 11 out of 15 companies in the J.D. Power Customer Satisfaction Index Ranking

Read more driver reviews of Progressive
Vicki - July 25, 2024
Verified

Depression

I've been with them for 10 years, but the rates keep going up. I have liability insurance and it costs $78 a month! I'm on social security and I never drive on the highway. I don't go out of town more than 5 miles a day. I hardly drive at all, just for basic stuff like going to the doctor. That's it. I will try to find a cheaper plan. I just feel that the price is unfair in my situation.

Maureen - July 25, 2024
Verified

Expensive for Seniors Who Drive Less Than 4000 Miles/Year

Too expensive.

Audrie - July 25, 2024
Verified

Insurance Review

I had a good experience.
  • 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 these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums. The data included on this page represent averages across driver ages, genders, credit scores, and driver profiles for Utah drivers.

Gap insurance in Utah FAQs

Deciding whether gap insurance coverage makes sense can be tricky. Here are answers to common questions about gap insurance coverage in Utah.

  • Does Utah require gap insurance?

    The state of Utah doesn’t require gap insurance. Drivers must have an insurance policy that meets the state’s minimum required coverage amounts for bodily injury liability, property damage liability, and personal injury protection. You can choose to add more coverage, including gap insurance.

  • How does gap insurance work in Utah?

    Gap insurance in Utah is pretty straightforward. You can buy a gap insurance policy from the dealership where you get your car or get an add-on policy from your insurance company. It’s typically cheaper to work with an insurance company. Drivers pay an extra $20 per year for coverage, on average.

  • What does gap insurance cover?

    Gap insurance covers the difference between your car’s current actual cash value and the amount you owe on your loan or lease. Often, drivers owe more than their car is worth. If the vehicle is a total loss or stolen, gap insurance pays for the difference. Some insurance companies offer slightly different versions of gap insurance, so it’s essential to understand your coverage.

  • Is gap insurance worth it?

    Gap insurance is often worth the extra expense if you have a new car with a small down payment or long repayment term. Many lenders require gap insurance if you lease a vehicle. The cost of coverage is usually small. You can expect to pay about $2 extra per month.

Methodology

Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

  • Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
  • Property damage limits between $10,000 and $50,000
  • No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • Comprehensive coverage with a $1,000 deductible
  • Collision coverage with a $1,000 deductible

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

Sources

  1. III. "What is gap insurance?."
  2. III. "What is auto insurance?."
  3. Utah.gov. "Utah Code Section 31A-22-304."
Taylor Milam-Samuel
Taylor Milam-Samuel

Taylor Milam-Samuel is a writer and credentialed educator who is fascinated by how people earn, save, and spend their money. When she's not researching financial terms and conditions, she can be found in the classroom teaching.

Sara Getman
Edited bySara GetmanAssociate Editor
Sara Getman
Sara GetmanAssociate Editor

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga and crocheting.

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