Gap insurance in Florida pays for the difference between the actual cash value (ACV) of a car registered in Florida and a driver’s loan balance. Gap insurance is not mandatory in Florida, but dealerships or banks might require it on leased or financed cars. Gap coverage is sometimes referred to as “loan/lease payoff” or “total loss protection,” with minor variations between each company’s coverage details.
Florida drivers can buy gap insurance through a standard insurance company, a specialty gap insurance company, their dealership, or their bank. However, most dealerships and banks charge interest on gap insurance, since they usually treat it as a lump-sum payment included in the loan balance. As a result, buying gap insurance as an add-on to a car’s insurance policy is usually the cheapest option. And if your insurer doesn’t sell gap insurance, you can always buy it from a standalone gap insurance provider.
Where to Buy Gap Insurance in Florida
- Liberty Mutual
- Florida Credit Union
- Gap Direct
- State Farm (car loan customers only)
- USAA (car loan customers only)
Gap insurance in Florida is inexpensive, usually costing between $20 and $100 per year when purchased from an insurance company. Gap insurance is particularly useful in Florida, too, since cars are especially likely to be damaged in the state. Florida is densely populated, has many high-risk and elderly drivers, and frequently faces natural disasters, so drivers should seriously consider whether gap insurance is worth it.
If you decide to purchase gap insurance in Florida, be sure that your provider is licensed by Florida’s Department of Financial Services. This is necessary because gap insurance in Florida is legally a form of credit insurance, which pays off a borrower’s debts in qualifying scenarios.
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