Anamarie Waite, Car Insurance Writer
@anamarie.waite
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.
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.
Michael, Member
@mdwaller8344
You can also get gap insurance on the loan through the banking institution. All you have to do is ask what the price difference per month would be. I've done it that way on four different vehicles, and it paid off on the one vehicle I needed it to!
People also ask
Did we answer your question?