Gap Insurance in New York (2024)

Gap insurance pays off the balance of a lease or loan if your vehicle is totaled or stolen.

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Cheapest recent rates in New York

Drivers using Insurify have found quotes as cheap as $121/mo for liability only and $183/mo for full coverage in New York.

*Quotes generated for Insurify users from New York 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 from New York 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.
Catherine Collins
Catherine Collins

Catherine leverages her background in education and finance to write articles that help readers make informed decisions about their insurance and finances.

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Sara Getman
Edited bySara Getman
Sara Getman
Sara GetmanAssociate Editor

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga and crocheting.

Updated October 30, 2024

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If someone steals or totals your financed or leased vehicle in New York, you’ll be responsible for paying off any outstanding loan balance. Since cars lose value quickly, your full-coverage insurance payout could be less than what you owe on your vehicle.

Gap insurance can cover any difference between your claim payout and loan balance. But in New York state, it’s up to you to take the initiative to buy it. A full-coverage policy in New York costs $266 per month, on average. Gap coverage typically adds an extra $2 per month to your insurance costs.

State laws don’t require auto loan companies to offer gap insurance when you finance a car. And the state bars lenders from requiring you to buy gap insurance as a condition of getting a loan.[1]

Here’s what you need to know about buying gap insurance in New York.

Quick Facts
  • Adding gap insurance to an existing policy with collision and comprehensive coverage typically only increases your annual premium by about $20, according to the Insurance Information Institute.

  • You can either buy gap insurance from a dealership or an insurance company.[2]

  • You’ll likely need to provide a police report and your lease or loan documentation in order to file a gap insurance claim.

How gap insurance works

A vehicle is a depreciating asset. Its actual cash value decreases as you drive it. If its value goes down faster than your loan balance, you may owe more than the car is worth — a situation known as negative equity. This can occur if you took out a loan for more than five years or didn’t put enough money down.

Car insurers base claims payout amounts on what vehicles are worth at the time of an accident. And they’ll pay it to your lien holder, not you. 

If someone steals or totals your car, your insurance settlement may not be enough to pay off the full remaining balance on your loan. Gap insurance — also called guaranteed asset protection — repays any loan balance remaining after your auto insurance policy pays.

New York state law requires lenders and leasing companies to tell you in writing if they’ll hold you responsible for your full loan balance in case of a total loss.

What gap insurance covers in New York

Gap insurance covers the difference between the current value of your car and what you owe on your car. It doesn’t cover any medical bills or car repairs following an accident.[3]

For example: Let’s say you purchase a $30,000 car with a $27,000 loan and drive it for one year before you have an accident that totals your vehicle. You have collision coverage with a $500 deductible.

By the time of your accident, your car has depreciated in value by about 20%, so it’s now worth $24,000. Your collision coverage will pay out $23,500.

You’ve made some payments on your auto loan but still owe $26,000 at the time of your accident. Gap insurance can cover the difference between what your vehicle is worth and your remaining loan balance. In this scenario, your policy would cover the $3,000 gap.

Best gap insurance companies in New York

You have several options to choose from when buying gap insurance in New York. Here’s a list of the best insurance companies in New York that offer the coverage.

Allstate

Allstate logo
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.
$62/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.
$137/mo
4.0
Best choiceBased on 5531 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 (3,016)

Howard

October 29, 2024

Verified Review

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 Review

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 Review

Best Overall

Check around before choosing. Allstate has been my choice for years.
See all Allstate reviews
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
833
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.94
A.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

The Allstate Guaranteed Asset Protection Program is available through some dealers, and you’ll have to add it at the time you buy your vehicle as an add-on to your financing agreement.

You can add Allstate’s gap coverage for loans for both new and used vehicles financed for up to 96 months. In case of a total loss, Allstate will pay your auto insurance deductible (up to $1,000) and up to $50,000 of your loan balance.

Pros
  • Available for both new- and used-vehicle purchases

  • Pays up to $1,000 toward your auto insurance deductible

Cons
  • Can only add when you buy the car

  • Must work with a dealer to obtain the coverage

Progressive

Progressive logo
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.
$243/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.
$338/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 (5,688)

Denise

October 29, 2024

Verified Review

Awesome!

I haven't had any problems with the company. I am pleased with the work they do.

Priscilla

October 29, 2024

Verified Review

They Increased My Insurance Payment from $117 a Month to $199 a Month

They are very inconsiderate.

Lisa

October 29, 2024

Verified Review

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.
See all Progressive reviews
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
819
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.82
A.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 doesn’t sell traditional gap insurance. Instead, it offers loan/lease payoff coverage. You can add this coverage to your existing full-coverage Progressive policy on any vehicle you finance or lease. Loan/lease coverage will pay toward your loan or lease balance, but no more than 25% of your vehicle’s value.

Pros
  • Can add to your full-coverage policy with Progressive

  • Many optional add-ons, including roadside assistance, trip interruption, and vehicle protection

Cons
  • Payout capped at 25% of vehicle value

  • Payout cap may be less in some states

Travelers

Travelers logo
User Reviews
4.7
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.
$398/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.
$555/mo
4.7
Best choiceBased on 745 verified guest reviews and ratings
How drivers feel about Travelers

Drivers appreciate the lowest prices, excellent service, and responsive call centers but dislike the rising premiums and poor claims handling.

AI-generated from the text of verified reviews collected by Insurify
Best For
Numerous discounts
Gap insurance
Rideshare coverage
How drivers feel about Travelers

Drivers appreciate the lowest prices, excellent service, and responsive call centers but dislike the rising premiums and poor claims handling.

AI-generated from the text of verified reviews collected by Insurify
Best For
Numerous discounts
Gap insurance
Rideshare coverage
Reviews (381)

Vicki

October 27, 2024

Verified Review

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 Review

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 Review

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%.
See all Travelers reviews
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
829
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.94
A.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

Travelers offers loan/lease gap coverage. If you total your vehicle, it covers the difference between the value of your car and what you still owe. Travelers’ gap coverage is only available for new cars, and you must buy your vehicle from a dealer to be eligible for Travelers’ gap product.

Pros
  • New-car replacement coverage also available

  • Get a quote online, through an agent, or by phone

Cons
  • Not available for used cars

  • May not be available in every state

  • 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 data, Insurify is able to offer drivers insight into how companies price their car insurance premiums. The data included on this page represent averages across ages, genders, credit scores, and driver profiles for New York drivers.

Gap insurance vs. full coverage

Full-coverage auto insurance adds collision and comprehensive coverages to basic liability insurance. The coverages can pay to repair physical damage to your vehicle. Full coverage may also include medical payments coverage.

While you can have a full-coverage policy without gap insurance, you’ll never have gap insurance without full coverage. That’s because lenders and leasing companies typically require drivers to buy full-coverage policies to protect their investment.

Here are key differences between gap insurance and full coverage:

Coverage Type
Pays for
Pays to
Stands Alone?
Full coverageCost to repair or replace damaged vehicle, up to policy limitInsured (in case of repairs) or leasing company/lien holder (in case of total loss)Yes. You don’t need to buy gap insurance to get full coverage.
Gap insuranceOutstanding loan/lease balance above full-coverage payout amount (limits may apply) in case of total lossLeasing company or lien holderNo. You can’t buy gap insurance without full coverage.

Who needs gap insurance in New York?

New York law doesn’t require drivers to purchase gap insurance, but your financial institution or dealership might. Some drivers should consider purchasing gap insurance for more financial protection.

You should consider purchasing gap insurance if you:

  • Took out a long-term car loan of more than 60 months

  • Made a small down payment

  • Rolled negative equity from an old vehicle loan into a new car loan

  • Have a lease and the auto lender requires it

  • Have a vehicle known for depreciating quickly

Drivers who made a large down payment or secured a car loan for 60 months or less don’t typically need gap insurance. But drivers who are risk-averse and prefer buying additional coverage can benefit from the confidence and peace of mind gap insurance provides.

Dan Stous, a certified financial planner (CFP), explains that dealerships often try to get you to purchase add-on products that aren’t useful when you’re buying a new car.

“Gap insurance is one of those products that is actually something to consider,” he says. Stous explains gap insurance can also benefit drivers without a lot of personal cash.

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How to buy gap insurance in New York

The most affordable way to buy gap protection in New York is to call your insurance agent and add the coverage to your existing car insurance policy. You can purchase a stand-alone policy through a car dealership or a lender, but it’s typically cheaper to buy the coverage as an add-on with your car insurance company.

The cost of gap insurance in New York varies based on your driver profile, vehicle type, and insurer. Adding gap insurance to your policy typically costs between $20 and $40 annually, but it can cost more if you buy it separately through a dealership or lender.

Gap insurance in New York FAQs

If you still have questions about gap insurance in New York, the following information should help you decide whether you should buy this coverage.

  • How does gap insurance work in New York?

    Gap insurance in New York works the same as it does in any other state. You’ll typically buy the coverage when you purchase a car that you’re financing or when you lease a vehicle.

    In case of a total loss due to an accident or theft, gap insurance in New York will pay the difference between your insurance settlement amount and your loan or lease balance. Depending on the insurer, the gap payout amount may be limited.

  • Is gap insurance a good idea?

    It depends. If you owe more on your vehicle than its actual cash value, gap insurance is a good idea. New York insurance law doesn’t allow lenders to require you to buy gap insurance. They can (and typically do) require you to buy a full-coverage policy.

    Since you’re already paying for full coverage, it makes sense to spend a bit more to protect yourself from a big bill if your vehicle is totaled or stolen.

  • Does GEICO offer gap insurance in New York?

    No. GEICO doesn’t currently offer gap insurance — in New York state or anywhere else. If you have GEICO for your full-coverage car insurance policy, you’ll have to look elsewhere for gap insurance.

  • Do you need gap insurance for a used car?

    More than half of all used car purchases are financed in the U.S. Vehicles depreciate the most — as much as 20% — during the first year. But you may still end up owing more than your used car’s actual cash value.

    If you took a long repayment term, put little or no money down, or financed at a high interest rate, it could be a good idea to buy gap insurance for your used car.

Sources

Catherine Collins
Catherine Collins

Catherine Collins is a freelance financial writer and author based in Detroit. She's the co-founder of MillennialHomeowner.com and MomsGotMoney.com, and author of the book Mom’s Got Money: A millennial mom’s guide to managing money like a boss. She has written for US News, Huffington Post, Money, Business Insider, Investopedia, Entrepreneur, Go Banking Rates, and many other publications. She currently resides in Detroit, Michigan with her boy-girl twins and a rescue dog named Julep.

Sara Getman
Edited bySara GetmanAssociate Editor
Sara Getman
Sara GetmanAssociate Editor

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga and crocheting.

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