Gap car insurance coverage through Progressive: prices and policies

If you're in the position of buying or leasing a new car, you'll need to either upgrade or get an entirely new car insurance policy. When you're setting up your new policy, there's a good chance you'll be asked if you'd like GAP car insurance coverage as an option. If you're looking into GAP car insurance coverage Progressive prices and options may make this an option too good to pass up.

GAP is an acronym that stands for Guaranteed Auto/Asset Protection. GAP insurance covers the difference between the amount of money you owe on your car and the value of your car if it's stolen or totaled due to an accident. The specific types of losses that are covered with GAP insurance and the extent of the coverage varies depending upon the company that provides the insurance. It's important to know exactly what GAP insurance covers before you add it to your policy.

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GAP car insurance, or loan/lease payoff coverage, is used if you end up in an accident and the cost to repair your vehicle is higher than its cash value. For example, if your car is totaled and the insurance company claims the cash value is $25,000, you'll still be responsible for your deductible. If the deductible is $500, the company will only pay you $24,500 to settle your claim. If you bought the car for $28,000 and you haven't made your first payment yet, you'll be required to pay the remaining balance of $3,500 out of your own pocket. If you had Progressive's loan/lease payoff coverage or GAP car insurance coverage, the balance of $3,500 would be paid by your policy.

There are a few stipulations you should be aware of when it comes to GAP car insuracne from Progressive. For instance, you can only have and make claims on your Progressive GAP insurance if you are also carrying Progressive's collision or comprehensive coverage. As it's name implies, Progressive's GAP coverage will fill the "gap" between what collision or comprehensive pays and what balance may be left of a car loan or lease.

One other consideration regarding Progressive's GAP car insurance coverage is that it has a maximum payout of 25 percent of your vehicle's value. While it would be a very rare occurrence if a newer car you are financing or leasing would, after comprehensive or collision settlements, still have more than 25 percent of its value remaining on a loan or lease balance, drivers should be aware of this provision.

GAP car insurance coverage from Progressive features affordable prices, which depend upon where you live, the value of your vehicle and how much coverage you want. Typically, this coverage adds from $20-$30 a month to your insurance premium.

GAP car insurance coverage through Progressive carries a few other stipulations, including:

• Your lender must be a registered and recognized financial institution
• Your Progressive car insurance policy must also have collision and comprehensive coverage options in place
• Your claim must be covered under your collision or comprehensive coverage and your vehicle must be determined a total loss
• This coverage won't pay any past-due amounts or other types of purchased coverage like warranty/repair, accidental death or credit life

If you're not sure if GAP car insurance is an optional coverage you should take on, you may want to consult with an experienced and licensed car insurance agent who can answer all of your insurance coverage questions. You can also get competitive coverage proposals to see if GAP car insurance coverage from Progressive is the right choice for you. Reply! can help you find a qualified insurance agent in your area who can help you obtain all the car insurance coverage you need and can afford.