Yes, you can get gap insurance from a different company than the rest of your car insurance as long as you purchase it through a dealership or lender when you buy a car. Buying gap insurance this way usually costs around $200 to $700 in total, which is often rolled into your loan or lease and can accrue interest.
If you have gap insurance through a lender or dealership, you are able to cancel it at any time, though you may need to replace it with a different policy if your loan or lease requires gap coverage. You typically cannot buy gap insurance from a different lender or dealership if you cancel your existing coverage, since gap insurance from a dealer or lender is usually only available at the time you get your vehicle loan or lease. You can instead get gap insurance through your insurance company.
Purchasing Gap Insurance from an Insurance Company
If you buy gap insurance from your insurance company, as an add-on to an existing policy, you can purchase it at any time during the life of your loan or lease. Gap insurance through an insurance company costs around $20 to $40 per year, making it a much cheaper alternative to buying from a lender or dealership.
However, you cannot get gap insurance from a different insurance company than the company you already have your auto insurance through. Gap insurance from an insurer can only be added on to a policy or bought alongside a new policy. So, if you have car insurance from Geico, for example, you cannot get gap insurance on its own from Progressive.
To learn more, check out WalletHub’s guide to gap insurance.
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