Gap Insurance in Virginia (2024)
Gap insurance gives your wallet extra protection when you finance or lease your vehicle. But the optional coverage comes at a cost.
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Written bySarah Sharkey
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7+ years writing insurance and personal finance content
Contributor to top media, including USA Today
A passionate personal finance advocate, Sarah’s writing has graced the pages of many of the personal finance and insurance industries’ top web publications.
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Edited byChris Schafer
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15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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Updated November 20, 2024
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Table of contents
When you drive a vehicle off the lot, it immediately starts to depreciate in value. No one enjoys watching their vehicle’s value decline, and this creates a significant financial risk for drivers who financed or leased their vehicles. Suddenly, you may owe more on the vehicle than it’s worth, and if you’re in an accident, you may be left with a bill and no vehicle.
Gap insurance mitigates this risk of financial loss after an accident for drivers with a financed vehicle. Full-coverage car insurance in Virginia costs an average of $184 per month. Adding gap coverage to your policy typically costs $2 more per month. If you plan to finance or lease a vehicle, gap insurance might be a useful addition to your car insurance policy.
Quick Facts
Gap insurance covers the difference between your vehicle’s current value and your remaining loan balance.
Without gap insurance, you’ll be on the hook for the remaining loan balance if the car is totaled.
Getting gap insurance will add to your auto insurance premium costs.
How gap insurance works
A new car loses value quickly. As a general rule, a new vehicle will lose approximately 20% of its value in the first year. Within five years on the road, new vehicles lose around 60% of their original value.[1]
Even if you purchase full-coverage car insurance, which your lender will likely require, that policy only covers the current market value of the vehicle.[2] But your outstanding loan balance, based on the vehicle’s initial value, may be higher than the car’s current value. The mismatch of numbers leads to a gap in your car insurance coverage.
Important Information
Gap insurance, or guaranteed asset protection insurance, is an optional coverage to protect you from having to pay off a totaled vehicle on your own. Instead, the insurance company will help cover the difference.
What gap insurance covers in Virginia
Gap insurance covers the difference between the vehicle’s current market value and your outstanding loan amount. After an accident, you’ll be able to pay off the remaining loan balance with the help of your gap insurance policy.
For example, let’s say you get into an accident that totals your vehicle. And your full-coverage policy will pay up to the current market value of $15,000. But your outstanding loan balance is $20,000. You’ll still be responsible for $5,000 unless you carry gap insurance.
In Virginia, the lender or dealer may offer gap insurance to drivers who finance or lease their vehicles.[3] But you’ll also have the opportunity to shop around for this coverage on your own.
Find Cheap Car Insurance in Virginia
Full-coverage policies average $184 per month
Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Best gap insurance companies in Virginia
The best gap insurance companies in Virginia strike a balance between affordable rates, high customer satisfaction, and a stable financial position. Here’s a closer look at some of the top options to consider.
American Family
| User Reviews | 4.5 |
|---|---|
| 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. | 9.1 /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. | $73/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. | $161/mo |
4.5
Best choiceBased on 386 verified guest reviews and ratings
How drivers feel about American Family
Drivers appreciate the responsive customer service and reliability but dislike the high prices and frequent rate increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Outstanding customer service
Flexible coverage options
Families with young drivers
How drivers feel about American Family
Drivers appreciate the responsive customer service and reliability but dislike the high prices and frequent rate increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Outstanding customer service
Flexible coverage options
Families with young drivers
Reviews (207)
Stephanie
November 5, 2024
Verified Review
It started out okay. My six-month policy was over and immediately, I received a rate hike of 124 dollars. I question why this is the case as I am an excellent driver. I'm tired of feeling punished for the actions of other irresponsible drivers. Additionally, I was informed that my insurance will continue to increase and they don't foresee any changes soon. It's not something I'm looking forward to. Thanks!
It started out okay. My six-month policy was over and immediately, I received a rate hike of 124 dollars. I question why this is the case as I am an excellent driver. I'm tired of feeling punished for the actions of other irresponsible drivers. Additionally, I was informed that my insurance will continue to increase and they don't foresee any changes soon. It's not something I'm looking forward to. Thanks!
Devona
November 5, 2024
Verified Review
Line by Line to Save Money
Go through every line item with your agent!
Joseph
November 4, 2024
Verified Review
Looking for Better
Beware of renewal periods, as American Family increases the premium amount at every renewal stage, even without you having any claims or violations.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NRNAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.3A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
AWhy we picked this company
American Family offers gap coverage as an add-on to auto insurance policies. While you might not lock in the lowest possible rate, the company offers a smooth customer service experience that might be worth the cost.
Pros
High rates of customer satisfaction
Save by bundling auto with home, renters, or motorcycle coverage
Much lower-than-average number of consumer complaints with the National Association of Insurance Commissioners
Cons
Only available in 19 states
Rates are merely moderate compared to other insurers
No rideshare insurance coverage
Erie Insurance
| User Reviews | 4.1 |
|---|---|
| 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. | $53/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. | $98/mo |
4.1
Best choiceBased on 240 verified guest reviews and ratings
How drivers feel about Erie Insurance
Drivers appreciate the excellent customer service, fair pricing, and responsive assistance. However, some are unhappy with unexpected rate increases and policy cancellations.
AI-generated from the text of verified reviews collected by Insurify
Best For
High customer satisfaction
Competitive rates
Optional coverages
How drivers feel about Erie Insurance
Drivers appreciate the excellent customer service, fair pricing, and responsive assistance. However, some are unhappy with unexpected rate increases and policy cancellations.
AI-generated from the text of verified reviews collected by Insurify
Best For
High customer satisfaction
Competitive rates
Optional coverages
Reviews (126)
Lana
November 10, 2024
Verified Review
Erie Insurance
The policy is difficult to understand. The rates are too high.
George
November 6, 2024
Verified Review
Good People
They handled my claim quickly.
Judie
November 4, 2024
Verified Review
Great Coverage
The coverage is excellent, but I am looking for a cheaper rate.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
867NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.49A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+Why we picked this company
Erie Insurance offers an Auto Security endorsement, which includes gap coverage and extra help with replacing a totaled vehicle. The company also has strong financial strength and customer satisfaction ratings.
Pros
Excellent BBB, J.D. Power, and A.M. Best ratings
Competitive rates for teenagers and drivers with speeding tickets
Cons
Available in only 12 states
Customers can’t buy a policy or file a claim online
USAA
| 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. | 9.4 /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. | $47/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. | $86/mo |
4.9
Best choiceBased on 1602 verified guest reviews and ratings
How drivers feel about USAA
Drivers appreciate the ease of working with the carrier, competitive rates, and responsive service but dislike the price increases and lack of rideshare add-ons in some areas.
AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
How drivers feel about USAA
Drivers appreciate the ease of working with the carrier, competitive rates, and responsive service but dislike the price increases and lack of rideshare add-ons in some areas.
AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
Reviews (914)
Gloria
November 15, 2024
Verified Review
Not Good for Claims
I have storm damage and the claim process is not satisfactory.
Martin
November 11, 2024
Verified Review
Price Shopping
I have been with USAA for over 60 years. Obviously, I've been very happy. Since I don't drive very far, I have been seeing advertisements for lower prices. However, I have no plans of leaving USAA.
Rena Sabine
November 8, 2024
Verified Review
Disappointing and inflexible service
My experience with this company has been disappointing, especially this second time around. I would suggest considering other options. From my recent interactions, they have been dismissive and argumentative. I have already started finalizing my next premium with another company. I'm perplexed as to how they receive praise when they treat clients in this manner.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
881NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.35A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
USAA offers gap insurance under the title of “total loss protection.” The company is known for offering reasonable rates, a suite of discounts, and top-notch customer service. But you’ll only be able to work with USAA if you’re a veteran, military member, or a family member of one.
Pros
High customer satisfaction
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
Customer reviews are mixed for service and claims processing
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 all ages, genders, credit scores, and driver profiles for Virginia drivers.
Gap insurance vs. full coverage
Full-coverage car insurance goes beyond liability coverage to include comprehensive coverage and collision coverage. When your vehicle is damaged, a full-coverage policy will help you repair or replace your vehicle. But the policy limit is usually capped at the vehicle’s current cash value.
Gap insurance isn’t included in full-coverage policies. Instead, gap insurance is an optional coverage that you can add to your policy to protect against expenses after a total loss.
Cheapest recent rates in Virginia
Drivers in and around Virginia have found policies from National General, Progressive, Elephant, and more, through Insurify in the last few days.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 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 November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 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 November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Who needs gap insurance in Virginia?
Here are some situations when purchasing gap insurance might make sense:[4]
You made a down payment of less than 20% on the vehicle purchase.
You financed the vehicle for a loan term of more than 60 months.
Your vehicle will depreciate faster than the average car.
Your new car loan amount includes negative equity from a previous car loan.
Of course, not everyone needs gap insurance. If you own your vehicle outright or can comfortably cover the gap in the event of an emergency, this coverage probably isn’t for you.
How to buy gap insurance in Virginia
If you decide you want to carry gap insurance, you can purchase it from a variety of sources. You can purchase gap insurance from a regular insurance company, and you may also be able to purchase it from your lender or the dealership.
In general, it’s usually more affordable to purchase gap insurance from an auto insurance company.
If you purchase it from your insurer, you can usually add this coverage to your existing policy. Most insurers require you to carry comprehensive and collision coverage as a baseline before adding gap coverage. But you’ll have the option to drop the coverage at any time.
As you look for gap coverage, remember to shop around. If you don’t compare quotes from multiple companies, you’ll likely overpay.
Virginia gap insurance FAQs
If you’re looking for gap insurance in Virginia, this additional information may help as you research your coverage options.
Does Virginia require gap insurance?
No. The Commonwealth of Virginia doesn’t require drivers to carry gap insurance.[5] Although this type of insurance coverage isn’t required by law, it can be a useful way to protect your financial interests. If your vehicle’s current value is less than your remaining vehicle loan balance, gap insurance is worth considering.
What are the cons of gap insurance?
The major disadvantage of gap insurance is that you’ll face higher auto insurance premiums when you add this optional coverage. But while you’ll pay more for your auto insurance, you’ll also have more financial protection.
When can you cancel gap insurance?
You can cancel gap insurance at any time by letting your insurer know. Once your car’s value is higher than the remaining loan balance, it makes sense to cancel your gap coverage. But even if your vehicle’s market value is less than the remaining loan balance, you have the option of canceling your gap coverage.
Do you need gap insurance for a leased car?
When you lease a vehicle, you may need to purchase gap insurance. In fact, some lessors require drivers to carry gap insurance on the vehicle. But even if the lessor doesn’t require you to carry it, gap insurance still offers important financial protection. If you’re leasing a vehicle, gap insurance covers the difference between the car’s market value and what you owe on the lease.
Can you buy gap insurance after you’ve already purchased a car?
Yes. It’s usually possible to purchase gap insurance on a vehicle you’ve already purchased. The catch is that your vehicle’s market value must be less than the remaining loan balance. But some insurance companies may limit when you can purchase this coverage.
Related articles
More cities in Virginia
Sources
- Kelly Blue Book. "How to Beat Car Depreciation."
- Insurance Information Institute. "What is auto insurance?."
- Virginia State Law Portal. "Requirements for offering guaranteed asset protection waivers.."
- Insurance Information Institute. "What is gap insurance?."
- Virginia DMV. "Insurance Requirements."
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Sarah SharkeyInsurance Writer
Sarah Sharkey is a personal finance writer who enjoys helping people make savvy financial decisions. She covered insurance and personal finance topics. You can find her work on Business Insider, Money Under 30, Rocket Mortgage, Bankrate, and more. Connect with her on LinkedIn.
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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