Gap Insurance in Louisiana (2024)
If you total your car, a gap insurance policy can help bridge any difference between your insurance payout and the amount you owe on your car loan.
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Written byJessica Martel
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Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
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Edited byAshley Cox
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7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Updated November 21, 2024
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Table of contents
Gap insurance, or guaranteed asset protection, is an optional type of car insurance you can buy if you finance or lease your vehicle. If something damages your car or someone steals it, this coverage pays the difference between your loan balance and your insurance claim payout. You should consider buying gap insurance if you owe more on your car than it’s currently worth.
Some lenders and lease companies require gap insurance as a condition of the financing agreement. Here’s what you need to know about finding gap insurance in Louisiana.
Quick Facts
A full-coverage policy in Louisiana costs an average of $247 per month. Adding gap coverage to your policy typically only costs an extra $2 per month.
USAA, Allstate, and Progressive are some of the best gap insurance companies in Louisiana.
You can purchase gap insurance from a car dealership or insurance company, but it usually costs more at a dealership because the lender will roll it into your loan balance and you’ll pay interest on it.
How gap insurance works
If your insurer deems your car a total loss — or if someone steals your vehicle — gap insurance can kick in after your insurance company pays out your collision and comprehensive coverage claim. Gap insurance can help pay the remaining amount you owe on your car loan or lease.
While collision or comprehensive insurance will cover the cost of the car’s actual cash value (ACV) of your car, minus your deductible, this might not cover the amount you still owe because of depreciation. After a year, new cars typically lose 20% of their value.[1]
To avoid paying out of pocket, you can purchase gap insurance coverage from the dealership or an insurance company when you buy or lease a vehicle.
Find Gap Insurance in Louisiana
Full-coverage rates start at $111 per month
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Based on 3,806+ reviews
4.8/5
What gap insurance covers in Louisiana
Gap insurance in Louisiana covers the difference between the amount of your claim payout and what you owe on your car loan or lease if you total your vehicle. For example, let’s say you get in a crash that totals your car, the insurance company finds that the current market value of the vehicle is $20,000, and you still owe $25,000 on your loan.
After your $1,000 deductible, your insurance company pays you $19,000 to cover the cost, leaving you with a remaining $6,000. If you have gap insurance, this will help cover the remaining $6,000. Without gap insurance, you’ll have to pay out of pocket.
Keep in Mind
Gap insurance doesn’t cover regular car maintenance, damage due to an accident, or damage to property. It also won’t pay for a replacement vehicle if you total your car. A separate replacement insurance policy can help you purchase a car similar to your totaled vehicle.
Best gap insurance companies in Louisiana
The best insurance companies provide quality coverage, have high customer satisfaction ratings, and earn high Insurify Quality (IQ) Scores. Here are the best gap insurance companies in Louisiana.
USAA
| User Reviews | 4.9 |
|---|---|
| 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. | 9.4 /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. | $82/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. | $140/mo |
4.9
Best choiceBased on 1602 verified guest reviews and ratings
How drivers feel about USAA
Drivers appreciate the ease of working with the carrier, competitive rates, and responsive service but dislike the price increases and lack of rideshare add-ons in some areas.
AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
How drivers feel about USAA
Drivers appreciate the ease of working with the carrier, competitive rates, and responsive service but dislike the price increases and lack of rideshare add-ons in some areas.
AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
Reviews (914)
Gloria
November 15, 2024
Verified Review
Not Good for Claims
I have storm damage and the claim process is not satisfactory.
Martin
November 11, 2024
Verified Review
Price Shopping
I have been with USAA for over 60 years. Obviously, I've been very happy. Since I don't drive very far, I have been seeing advertisements for lower prices. However, I have no plans of leaving USAA.
Rena Sabine
November 8, 2024
Verified Review
Disappointing and inflexible service
My experience with this company has been disappointing, especially this second time around. I would suggest considering other options. From my recent interactions, they have been dismissive and argumentative. I have already started finalizing my next premium with another company. I'm perplexed as to how they receive praise when they treat clients in this manner.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
880NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.35A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
USAA offers car replacement assistance coverage, which is similar to gap insurance but with more benefits. If you total your car or someone steals it, USAA will pay off your remaining loan balance, but it’ll also give you 20% more than what your vehicle is worth. You can decide how to use the money, including for a down payment on a new car. But this coverage doesn’t apply to leased vehicles.
Pros
Low premiums
SafePilot program rewards good driving with a discount of up to 30%
Cons
Only available to active-duty military, veterans, military spouses, or children of service members or veterans
No 24/7 live customer phone support
Allstate
| User Reviews | 4.0 |
|---|---|
| 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. | $106/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. | $181/mo |
4.0
Best choiceBased on 5648 verified guest reviews and ratings
How drivers feel about Allstate
Drivers appreciate the initial pricing and overall service but dislike the frequent rate increases and misleading pricing tactics.
AI-generated from the text of verified reviews collected by Insurify
Best For
Accident forgiveness
Wide availability
Cheap rates
How drivers feel about Allstate
Drivers appreciate the initial pricing and overall service but dislike the frequent rate increases and misleading pricing tactics.
AI-generated from the text of verified reviews collected by Insurify
Best For
Accident forgiveness
Wide availability
Cheap rates
Reviews (3,073)
Rodney
November 20, 2024
Verified Review
Lower Insurance
The insurance is too high.
Lyudmila
November 14, 2024
Verified Review
No Discount for Seniors
The service is mediocre.
Latonya
November 12, 2024
Verified Review
Not Recommended
I would not recommend Allstate. They did not support me when I needed them most. They didn't believe me or the other party when we said my first accident wasn't my fault. My agent incorrectly reported to the DMV that my insurance had lapsed when it hadn't. They increased my insurance rates four to five times within two years. A representative from my agent's office called me to sell renters insurance, promising a lower monthly rate, which turned out to be false. After I was involved in a hit and run, instead of ensuring my wellbeing, they raised my insurance again to almost $800/month. I find Allstate to be a disappointing car insurance company and I wouldn't recommend them to anyone.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
833NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.94A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A-Why we picked this company
Allstate offers gap insurance in addition to standard car insurance coverage options. You can also save with several discounts, including those for bundling your policies, safe driving, being a good student, and paying your premiums on time.
Pros
A (Excellent) financial strength rating from AM Best
Pay-per-mile option available
Cons
Below-average J.D. Power customer satisfaction rating in Louisiana
Rates are merely average compared to other insurers
Progressive
| 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. | $126/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. | $215/mo |
How drivers feel about Progressive
Drivers appreciate the professional service and accident forgiveness but dislike the high prices and frequent rate increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Easy buying process
Telematics program
How drivers feel about Progressive
Drivers appreciate the professional service and accident forgiveness but dislike the high prices and frequent rate increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Easy buying process
Telematics program
Reviews (5,796)
Elandra
November 20, 2024
Verified Review
I don't even drive 30 miles a month, yet I pay over $200 a month. I have a clean driving record. This company is not good.
I don't even drive 30 miles a month, yet I pay over $200 a month. I have a clean driving record. This company is not good.
Denise
November 20, 2024
Verified Review
Fraudulent Claims Filed
They permitted false claims to be filed, complete with fabricated police report numbers, and treated the client as if the claim was not fraudulently filed.
Steven
November 19, 2024
Verified Review
I'll Stay with Them, No One Can Beat Them!
They are the cheapest I have found!
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
819NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.82A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+Why we picked this company
Progressive offers loan/lease payoff coverage, which helps pay the difference between your car’s value and your remaining loan or lease balance if someone steals your car or you total it. Progressive will pay up to 25% of your vehicle’s value and will send payment directly to your loan or lease provider.
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) for a company of its size
Below-average J.D. Power customer satisfaction rating in Louisiana
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 these insights, 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 Louisiana drivers.
Gap insurance vs. full coverage
Full-coverage car insurance in the state of Louisiana can include a combination of collision, comprehensive, liability, and medical payments insurance.[2] It doesn’t include gap insurance in Louisiana or elsewhere. Instead, you should use gap insurance in combination with your full-coverage policy.
Dealerships and car insurance companies typically sell gap insurance as an optional insurance product. Some car dealerships might require you to purchase gap coverage if you have a loan or lease on your vehicle. It’s a good idea to purchase gap insurance to avoid out-of-pocket payments if you total your car in an accident.
Who needs gap insurance in Louisiana?
Louisiana state law doesn’t require drivers to purchase gap insurance. But if you purchase or lease a new vehicle, the value depreciates quickly. Within the first year of having a new car, your vehicle will likely lose 20% of its value. If you total a leased or financed vehicle, you may owe more than what your insurance company will cover based on the car’s value.
You should consider purchasing gap insurance in Louisiana if any of the following apply to your situation:
You made a small down payment (less than 20%) on the vehicle.
You financed the vehicle for 60 months or longer.
You leased the car.
You purchased a vehicle that depreciates at a faster-than-average rate.
You rolled negative equity from a previous car loan into a new loan.
You put many miles on your vehicle, as this can cause depreciation.
Gap insurance might not make sense if:
You made a large down payment on your vehicle.
You plan to pay off your loan in a short period of time.
You purchased a used car without financing it.
Before you commit to gap insurance, you should consult a car insurance agent or an auto loan lender to decide if this coverage makes sense for you.
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How to buy gap insurance in Louisiana
If you purchase a new car in Louisiana, most dealerships will offer gap insurance. Many insurance companies also offer gap insurance and usually charge less than the dealership.
Adding gap insurance to your collision and comprehensive coverage through your car insurance company only adds about $20 a year to your annual premium, according to the Insurance Information Institute.
While it’s possible to buy gap insurance as a stand-alone policy, most insurers include it as an add-on to your existing auto insurance policy.
Cheapest recent rates in Louisiana
Drivers using Insurify have found quotes as cheap as $65/mo for liability only and $109/mo for full coverage in Louisiana.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 21, 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 November 21, 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 November 21, 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 November 21, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Gap insurance in Louisiana FAQs
The following information should help answer some remaining questions about buying gap insurance in Louisiana.
Does Louisiana require gap insurance?
Louisiana doesn’t require gap insurance. In fact, no states mandate it. Louisiana law only requires drivers to carry liability coverage to pay for property damages or personal injury if they cause an accident.
Who needs gap insurance in Louisiana?
If you owe more than the current market value of your vehicle, you might benefit from gap insurance. For instance, you should consider it if you made a small down payment on your vehicle or purchased a vehicle that depreciates faster than average. Some lenders and leasing companies may require you to purchase gap coverage if you finance or lease your car.
What exactly does gap insurance cover?
Gap insurance covers the difference between the amount of a claim payout and what you owe on your car loan or lease if you total your vehicle. Collision and comprehensive coverage will only cover the current market value of your car, not the remaining car loan balance. Gap insurance prevents you from paying the remainder of your lease or loan out of pocket.
What are the cons of gap insurance?
If you own your car outright or have a shorter loan term, gap insurance may not be beneficial for you. It also doesn’t cover normal wear and tear, mechanical breakdowns, repairs if you’re in a wreck, or injuries you and your passengers sustain in an accident.
Related articles
More cities in Louisiana
Sources
- Insurance Information Institute. "What is gap insurance?."
- Insurance Information Institute. "Auto insurance basics—understanding your coverage."
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Jessica Martel
Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
Featured in
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