Gap Insurance in Florida (2024)
Florida doesn’t require gap insurance, but it’s a good idea to buy it if you have a lease or car loan.
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Written byElizabeth Rivelli
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Elizabeth Rivelli
5+ years writing insurance and personal finance topics
Auto, home, health, and life insurance expertise
Elizabeth has extensive insurance industry experience, having written for Insureon, Rate Retriever, and Insurify. She’s also finance and insurance editor for Car and Driver.
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Edited byKatie Powers
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Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Updated October 30, 2024
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When you lease or finance a vehicle in Florida, getting gap insurance can be beneficial. If you experience a total loss, like a car accident or a flood destroying your car, gap insurance pays the difference between your car’s value before the loss and the remaining amount you owe on the loan or lease.
The national average for full coverage is $257 per month in Florida. Gap insurance typically costs an additional $2 per month. Florida insurance laws don’t require gap insurance, but it can provide financial protection and give you some peace of mind.
Quick Facts
You can typically purchase gap insurance from your lender or insurance company.
Gap insurance covers the difference between your car’s actual cash value (ACV) and your auto loan balance in a covered total loss.
Adding gap insurance to your insurance policy costs around $20 per year, according to the Insurance Information Institute.[1]
How gap insurance works
Gap insurance is short for “guaranteed asset protection.” It’s an optional auto insurance policy that applies when your insurer declares your vehicle a total loss in a covered claim like an accident or theft. It covers the difference between the car’s actual cash value before the loss and what you still owe on the loan or lease.
Not all drivers need gap insurance coverage. It’s only necessary if you have a lease or finance your vehicle with an auto loan. Some lenders require gap insurance, particularly if you have a lease.
Because most lenders and leasing companies require drivers to purchase full-coverage car insurance, which includes collision and comprehensive coverages, you’ll first file a claim with your auto insurer. After you receive the initial claim settlement from your insurer, you’ll need to provide your gap insurance company with a statement verifying the car’s actual cash value (ACV) and how much you received for the loss.
Keep in Mind
Gap coverage doesn’t pay you. It pays off your loan or lease balance.
What gap insurance covers in Florida
Gap insurance in Florida covers the negative equity in your vehicle if your insurer declares it a total loss. Gap insurance doesn’t provide any protection for you, your vehicle, or anyone else’s vehicle. The only time gap insurance applies is when you total your car and owe more on the loan or lease than you receive in an insurance claim.
For example, imagine that a flood from a hurricane totals your car. The insurance company determines that your vehicle is worth $5,000, but you still owe $6,000 on your auto loan. In this case, you would put the $5,000 settlement toward paying off your loan, and your gap insurance would cover the $1,000 difference.
Remember, lease agreements or loan contracts don’t terminate if you total your car. You’re still responsible for paying the lender what you owe, even if the car is a total loss. Without gap insurance, you’d have to pay the difference out of pocket if you owed more than what you received in an insurance settlement.
It’s also important to know that most gap insurers cap the amount of money they’ll pay. For instance, Progressive will pay up to 25% of your vehicle’s value, though this amount can vary by state, and Allstate pays up to $50,000. So, if your totaled car were worth $5,000, Progressive would only pay a maximum of $1,250.
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Best gap insurance companies in Florida
Most national insurance companies offer gap insurance as an endorsement on your existing car insurance policy. Here are some of the best gap insurance companies in Florida:
Travelers
TravelersCompare personalized, real-time quotes
| User Reviews | 3.4 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.0/10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $137/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $172/mo |
Travelers sells a gap insurance endorsement that drivers can add to their car insurance policies. The company also offers endorsements like accident forgiveness, rideshare insurance, and new-car replacement coverage.
Pros
Accident forgiveness available
Robust insurance coverage selections and discount offerings
Cons
Rideshare coverage only available in Colorado and Illinois
High number of negative customer reviews with the Better Business Bureau
Read more driver reviews of Travelers
Vicki - October 27, 2024
Verified
Good but Costly
I had a great experience with Travelers and would still be with them, but I got a better rate with another company.
Nancy - October 23, 2024
Verified
Not Great by Any Means
Be careful when you submit a claim! They actually owe me $1,000 from five years ago and I still haven't received it.
Birdie - October 21, 2024
Verified
Expensive
I've never needed any claims for over 40 years, have no tickets, and an excellent credit score, yet my rates increased by 50%.
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Allstate
AllstateCompare personalized, real-time quotes
| User Reviews | 3.1 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.9/10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $115/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $145/mo |
Allstate offers robust gap insurance policies with a few perks that other insurers don’t offer. Allstate’s gap insurance will also cover your deductible (up to $1,000), and the company will waive up to $50,000 of your loan or lease balance if it declares your car a total loss. But you must add gap insurance to your Allstate policy when you initially lease or finance the car.
Pros
Well-established with superior ratings from AM Best
Pay-per-mile option available
Cons
Low customer satisfaction
Rates are merely average compared to other insurers
Read more driver reviews of Allstate
Howard - October 29, 2024
Verified
They Have You By The Short Hairs
I was on a three-lane highway in heavy traffic and couldn't avoid a piece of metal in my lane. I couldn't swerve or I would have hit other cars. Allstate said the accident was the driver's fault and then doubled my insurance cost.
Hugh - October 29, 2024
Verified
Actual Crash Damages vs. Damages Quoted Over the Phone
There were problems getting the correct amount paid out when I made a claim. I had to escalate the issue to the Senior Vice President to get a proper settlement when a deer hit my truck. There was a $5000 difference between what was paid out when the estimator assessed the value of damage to my truck and the actual estimate done by a local car dealership. The Senior Vice President agreed that the amount of damage done was the amount quoted by the local car dealership.
Miriam - October 29, 2024
Verified
Best Overall
Check around before choosing. Allstate has been my choice for years.
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Progressive
ProgressiveCompare personalized, real-time quotes
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 819 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.4/10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $183/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $266/mo |
Progressive’s gap insurance will cover your remaining loan balance at a maximum of 25% of your car’s value. Overall, Progressive is one of the best car insurance companies in Florida, offering many endorsements and discounts for policy savings. Progressive also offers online tools that can help you get the cheapest premium for your situation.
Pros
Rewards for good drivers
Numerous coverage options and discounts available
Cons
Higher-than-expected number of complaints with the National Association of Insurance Commissioners (NAIC)
Below-average J.D. Power customer satisfaction ratings
Read more driver reviews of Progressive
Denise - October 29, 2024
Verified
Awesome!
I haven't had any problems with the company. I am pleased with the work they do.
Priscilla - October 29, 2024
Verified
They Increased My Insurance Payment from $117 a Month to $199 a Month
They are very inconsiderate.
Lisa - October 29, 2024
Verified
Disappointed
They were good until they doubled my monthly payment. My deductible also went up to $1000. At that price, I can fix my vehicle on my own.
…
Liberty Mutual
Liberty MutualCompare personalized, real-time quotes
| User Reviews | 2.8 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 7.7/10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $141/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $259/mo |
Liberty Mutual offers gap insurance to current customers. To get gap coverage, you must add the endorsement at the same time that you insure your vehicle, and you must be the car’s first owner. In addition to gap insurance, Liberty Mutual sells roadside assistance, teacher’s insurance, new-car replacement coverage, OEM parts coverage, and more.
Pros
Wide range of available discounts
Accident forgiveness available
Cons
Many negative reviews and customer complaints
Premiums are relatively high compared to industry average
Read more driver reviews of Liberty Mutual
Frank - October 29, 2024
Verified
Been with them for 27 years, but I'm unsure
They are expensive. We are low mileage drivers with three cars, and only my wife and I are driving.
Gary - October 29, 2024
Verified
Price Gouging!
They recently increased my premium from $182 to $231 per month for no apparent reason, other than a general raise for everyone.
Donald - October 29, 2024
Verified
Don't use them, they will increase your rate within the six-month period of your term! And that's with no claims!
Don't use them, they will increase your rate within the six-month period of your term! And that's with no claims!
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Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page.
The car insurance data includes coverage analysis and details on drivers’ vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
With this information, Insurify is able to offer drivers insight into how companies price their car insurance premiums. The data included on this page represent averages across driver ages, genders, credit scores, and driver profiles for Florida drivers.
Gap insurance vs. full coverage
In Florida, a full-coverage car insurance policy typically includes collision coverage, comprehensive coverage, liability insurance, and medical payments insurance. Full-coverage insurance doesn’t include gap insurance. You have to add gap insurance as an endorsement or purchase it as a separate policy.
If you lease or finance your car, the dealer will often require full-coverage insurance.[2] Florida gap insurance can be a beneficial addition to a full-coverage insurance policy. Although a full-coverage policy will provide a settlement to replace your car after a total loss, it won’t cover the remaining balance on your loan.
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Learn More: Medical Payments Coverage on Car Insurance: What Is It?
Who needs gap insurance in Florida?
Florida insurance laws don’t require gap insurance. But it can be beneficial in various situations:
You lease your vehicle (sometimes required).
You have an auto loan and make a down payment of less than 20%.
Your auto loan term is five years or longer.
Your car depreciates more quickly than other vehicles.
Gap insurance isn’t necessary if you own your vehicle outright. And even if you need gap insurance now, you should be able to drop the coverage eventually. For instance, as you get closer to paying off your vehicle and have positive equity, you no longer need gap insurance.
If you’re thinking about buying gap insurance, consult a car insurance agent or an auto lender to get a quote.
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How to buy gap insurance in Florida
You can buy Florida gap insurance in two main ways. You can purchase a policy either through an insurance company or through your lender.
Many drivers get gap insurance by adding an endorsement to their full-coverage car insurance policy. You can usually add a gap insurance endorsement any time before your loan is paid off or your lease is up. But some insurers only allow you to add gap insurance during a certain time frame.
If you buy Florida gap insurance through a dealership or lender, it’s usually sold as a stand-alone policy. Sometimes, the lender rolls the cost into your monthly lease or loan payments.
Keep in Mind
If you buy gap insurance through a dealership or lender, you might only be able to get coverage when you initially sign your agreement. Plus, you may end up paying interest on the insurance payments.
Cheapest recent rates in Florida
Drivers using Insurify have found quotes as cheap as $48/mo for liability only and $71/mo for full coverage in Florida.
*Quotes generated for Insurify users within the last 10 days. Last updated on October 30, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 30, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on October 30, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 30, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Florida gap insurance FAQs
If you’re thinking about getting gap insurance in Florida, check out common questions other drivers ask for more information. You can also read Insurify’s guide on how to get more out of a total loss settlement.
Does Florida require gap insurance?
No. Florida’s minimum insurance requirements don’t include gap insurance.[3]
How much is gap insurance in Florida?
The cost of gap insurance in Florida depends on several factors, like your insurance company and the value of your vehicle. The Insurance Information Institute estimates that adding gap insurance to a policy costs $20 per year. You can get a quote from your insurance company or dealership to see how much you could pay for gap coverage.
Does gap insurance cover hurricane damage?
Gap insurance doesn’t cover hurricane damage. But if a hurricane or flooding totals your vehicle, gap insurance would cover the difference between your car’s value and what you owe on it.
Why is gap insurance a good idea?
Gap insurance is a good idea because it provides financial protection when you lease or finance a car. If you total your car or someone steals it, you still have to repay your lender. And without gap insurance, you’re responsible for the difference between the total loss settlement and the remainder of the auto loan.
Related articles
More cities in Florida
Sources
- Insurance Information Institute. "What is gap insurance?."
- Insurance Information Institute. "Auto insurance basics—understanding your coverage."
- Florida Department of Highway Safety and Motor Vehicles. "Florida Insurance Requirements."
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Elizabeth Rivelli
Elizabeth Rivelli is a freelance writer covering insurance and personal finance. She has extensive knowledge of various insurance lines, including property and casualty, health, and life insurance. Her byline has been featured in dozens of publications, including Investopedia, Forbes, Bankrate, NextAdvisor, and Insurance.com.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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