McKayla Girardin, Car Insurance Writer
@mckayla_girardin
Gap insurance in Pennsylvania costs about $20 to $700, depending on whether you buy it from a dealership or an insurer and how long you keep the coverage. If you purchase gap insurance through an insurance company, it will be an add-on to your insurance policy, which will cost an average of $2,321 per year altogether.
Gap insurance covers the gap between a totaled vehicle's actual cash value and the amount still owed on a loan or lease. It is usually only needed for one to two years, until your vehicle is worth more than what you still owe on your loan or lease.
The cost of gap insurance doesn't vary much by state. Rather, the cost of gap insurance differs based on the provider it is purchased from and the vehicle being covered.
Cost of Gap Insurance by Provider
| Providers | Cost |
| Dealership | $200 to $700 total |
| Lender | $200 to $700 total |
| Add-on to Existing Car Insurance Policy | $20 to $40 per year |
Although buying gap insurance directly from your insurance company is usually the cheapest option, not every insurer offers gap insurance in Pennsylvania.
Insurance Companies That Offer Gap Insurance in Pennsylvania
Gap insurance can be a useful thing to have for Pennsylvania drivers who made a small loan down payment, have a lease, or drive a car that depreciates in value quickly, like a sports car or a luxury vehicle. While gap insurance is never required by Pennsylvania insurance laws, lenders and lessors often require it for financed vehicles.
To learn more, check out WalletHub's guide to gap insurance.
People also ask
Is gap insurance worth it?
Gap insurance is worth the money whenever you owe more on your car loan or lease than the car is worth. For example, if you paid a small down payment on your car, your loan term is 4-5 years or your car will depreciate quickly, you should consider getting gap insurance.
Gap insurance is never mandated by state law, and few lenders or lessors require it, so the decision to buy it depends on...
read full answer by WalletHub, Financial CompanyWhat is full coverage insurance in Pennsylvania?
Full coverage insurance in Pennsylvania is usually defined as a policy that provides more than the state’s minimum liability coverage, which is $15,000 in bodily injury coverage per person, up to $30,000 per accident, and $5,000 in property damage coverage. Full coverage in Pennsylvania also includes optional collision and comprehensive insurance. As a result, full coverage insurance costs an average of $2,321 per year in Pennsylvania, while a state minimum policy costs $611 per year.
If you can’t afford to repair or...
read full answer by Anamarie Waite, Car Insurance WriterDo I need gap insurance if I have full coverage?
Gap insurance is needed even if you have full coverage because full coverage will not reimburse you for the difference between what you owe on your car loan or lease and the vehicle’s actual cash value if the car is totaled or stolen. Gap insurance fills in that gap.
When You Need Gap Insurance If You Have Full Coverage
- You’re financing/leasing a new vehicle for a long term (60+months).
- You made...
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