Gap Insurance in Virginia (2026)
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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Sarah SharkeyInsurance Writer
7+ years writing insurance and personal finance content
Contributor to top media, including USA Today
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Edited byChris Schafer
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Chris SchaferDeputy Managing Editor, News and Marketing Content
15+ years in content creation
7+ years in business and financial services content
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Reviewed byDavid Marlett
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David MarlettAdvisor
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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 $199 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 $199 per month
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4.7 out of 5 based on 13,775 reviews
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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
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 657 |
|---|---|
| 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. | 9.3 /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. | $160/mo |
How drivers feel about American Family
Drivers appreciate the fast claims processing and good initial rates but dislike the consistent rate increases and poor communication from agents.
Based on analysis of verified reviews collected by Insurify
Best For
Showing recent national reviewsSee all 267 American Family reviews
Verified Review
Reviewed in Ohio on April 4, 2026
Roadside assistance was removed without my knowledge, so I’m not reimbursed for my jump starts. The agent only communicates via email or text. I would not recommend Allstate in Coshocton.
Verified Review
Reviewed in Oklahoma on April 4, 2026
They started out affordable, but the rates jumped up with hardly any warning. After being with them for years, my policy kept increasing. I would advise others to keep looking.
Verified Review
Reviewed in Washington on March 31, 2026
Everything was good, I just found better coverage at a cheaper price.
…
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
657NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.47A.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.
Erie Insurance
| 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. | 8.4 /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. | $84/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. | $153/mo |
3.8
A solid optionBased on 512 verified driver reviews and ratings
Erie Insurance's score | Industry average | |
|---|---|---|
| Coverage options | 3.9 | 3.2 |
| Customer service | 3.9 | 3.6 |
| Discounts | 3.4 | 2.9 |
| Policy transparency | 3.8 | 3.1 |
| Value | 3.3 | 2.9 |
How drivers feel about Erie Insurance
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.
Based on analysis of verified reviews collected by Insurify
Best For
Showing 5 reviews from Virginia driversSee all 231 Erie Insurance reviews
Verified Review
Reviewed in Virginia on April 4, 2026
Good, but I feel the price is too high.
Verified Review
Reviewed in Virginia on January 8, 2026
Friendly, efficient, and always the best prices when I've researched.
Verified Review
Reviewed in Virginia on January 3, 2026
No problems and a company with the lowest premium increase among other competitors.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
713NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.68A.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.
USAA
| User Reviews | 4.3 |
|---|---|
| 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. | $135/mo |
4.3
Best choiceBased on 3,476 verified driver reviews and ratings
USAA's score | Industry average | |
|---|---|---|
| Coverage options | 4.2 | 3.2 |
| Customer service | 4.1 | 3.6 |
| Discounts | 3.9 | 2.9 |
| Policy transparency | 4.1 | 3.1 |
| Value | 3.8 | 2.9 |
How drivers feel about USAA
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.
Based on analysis of verified reviews collected by Insurify
Best For
Showing 4 reviews from Virginia driversSee all 1,544 USAA reviews
Verified Review
Reviewed in Virginia on April 22, 2026
Switched from USAA to The General, same coverage at half the price.
Verified Review
Reviewed in Virginia on March 13, 2026
It was great until policy renewal, then it went up $110 a month.
Verified Review
Reviewed in Virginia on November 27, 2025
Great insurance company that makes the claims process easy.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
743NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.31A.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.
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.
Recent Insurify quotes for Virginia drivers
Drivers using Insurify have found quotes as cheap as $67/mo for liability only and $98/mo for full coverage in Virginia.
*Quotes generated for Insurify users within the last 10 days. Last updated on April 23, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
Rates shown are real-time Insurify user quotes from 500+ 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 April 23, 2026. 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 April 23, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
Rates shown are real-time Insurify user quotes from 500+ 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 April 23, 2026. 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.
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
7+ years writing insurance and personal finance content
Contributor to top media, including USA Today
Featured in
Chris SchaferDeputy Managing Editor, News and Marketing Content
15+ years in content creation
7+ years in business and financial services content
Featured in
David MarlettAdvisor