Does Nationwide offer gap insurance?

Yes, Progressive offers gap insurance for about $5 per month, on average. If your car is totaled, Progressive's gap insurance, also called loan/lease payoff coverage, covers the difference between your loan balance and what your car is worth, minus your deductible. Progressive gap insurance will pay as much as 25% more than your car’s depreciated value.… read full answer

Let’s say you finance $30,000 for a new car, which is now worth $20,000. You total your car and find that you still owe $25,000 on the loan. Full coverage only pays up to your car’s depreciated value—$20,000. That leaves you with a $5,000 difference. If you carry gap insurance, Progressive will pay the complete $25,000 balance, minus your deductible (usually $500 or $1,000).

You might consider Progressive gap insurance if there is a significant difference between your car’s actual cash value and what you owe on a loan used to get it. In particular, if you just bought a new car (especially with a low down payment) or are financing a vehicle for more than 48 months, you might want gap insurance. You must carry comprehensive and collision coverage to add gap insurance to a Progressive policy.

No, Geico does not offer gap insurance. Unlike seven of the top 10 car insurance companies, Geico does not sell gap insurance, a specialty type of coverage that pays for the difference between a totaled car’s value and the driver’s loan or lease balance.

You have several options if you’re a current Geico customer and are looking for gap insurance. You could … read full answerswitch insurers and purchase a policy from a company that does offer gap insurance (or loan/lease payoff coverage, which is similar), like Nationwide or Progressive. You could also maintain your policy with Geico and purchase gap insurance from a dealership or a stand-alone company. However, it’s worth noting that dealership gap insurance is often the most expensive option, since it’s usually rolled into your loan and charged interest.

For more information, check out WalletHub’s complete guide to gap insurance.

GAP insurance pays the difference between what your car is worth on the market (as it depreciates) and the amount still owed under the lease contract, or loan if you are financing a purchase. Before you purchase GAP insurance for a leased vehicle, read the contract carefully to see if GAP coverage is already included in the cost of the lease. It may not be phrased as "GAP" in the contract, it may be referred to as "lease coverage." … read full answer

Compare the price of a GAP policy purchased from your personal insurance company with that offered by the dealer. You may find your insurance company offers coverage at a much lower cost.

Also, as you make lease payments over time, the gap between the lease value and actual value will gradually narrow. You may be able to drop the GAP policy after a few months, depending upon what kind of lease deal you negotiated.