Finder may earn compensation from partners, but editorial opinions are our own. Advertiser Disclosure

Gap insurance in Florida

Enjoy the salt life without worrying about loan payments when the weather goes awry.

Avatar
Sarah George
Updated . What changed?
Fact checked
Name Product Roadside assistance New car protection Accident forgiveness Safe driver discount Available states
Allstate
Allstate
Optional
13%
All 50 states
Your dedicated agent can help you find the best savings with multiple discounts and rewards programs.
Get quotes
More Info
Progressive
Progressive
Optional
30%
All 50 states & DC
Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.
Get quotes
More Info
Pretected
Pretected
Optional
Yes
All 50 states
Get your most compatible insurance options via a "smart matching" method aimed at finding you value.
Get quotes
The AARP Auto Insurance Program from the Hartford
The AARP Auto Insurance Program from the Hartford
Optional
Yes
All 50 states
Enjoy low rates for mature drivers, plus perks like new car replacement and lifetime repair guarantees. Only for drivers over age 50.
Get quotes
More Info
USAA
USAA
Optional
Yes
All 50 states & DC
Affordable car insurance with highly rated customer service. Only available to military members and veterans and their family.
Get quotes
More Info
Liberty Mutual
Liberty Mutual
Optional
30%
All 50 states & DC
Earn free accident forgiveness after five years claims-free and customize your policy anytime online at the tap of a button.
Get quotes
More Info
loading

Compare up to 4 providers

Car insurance brands

View more
Start comparing

Florida doesn’t require drivers to carry gap insurance, but the state allows lenders to require it for car loans to protect their investment in your car. Many car insurance companies also require you to buy comprehensive or collision before getting gap insurance. Comprehensive, collision and gap insurance are typically required for your car loan anyway.

Why should I buy gap insurance in Florida?

Gap insurance covers the gap between what your car is worth and what you owe on your loan. Say your car gets stolen, totaled or swept away by a hurricane. If your insurance payout is less than the car is worth, you’ll be on the hook to pay back your loan. Gap insurance covers up to the full loan amount for your car regardless of your claim payout. Reasons to buy gap insurance even though it’s not required by the state:

  • Florida has more severe accidents. Florida has a high crash fatality rate compared to other states, which could mean a higher chance of totaling your car in an accident.
  • You owe money on your car loan. Gap insurance is a good idea while you’re paying down your car loan or lease.
  • You live in a city prone to catastrophes. Many cities in Florida are set in high-risk flood or hurricane zones, which means more risk for catastrophic car damage.
  • Your loan requires it. You may need it to fulfill your contract.

How much is gap insurance in Florida?

You can expect the average $20 to $30 premium per year in Florida. By comparison, the state’s average car insurance premium is around $1,800 per year.

However, your gap coverage could go up if you live in a severe hurricane or flood zone where insurers are more likely to pay out for claims. Also, if you’re required to get comprehensive and collision for a financed car, you could pay an extra $424 per year for those.

Florida gap insurance in action. Sandy bought a car with a loan for $20,000 and added car insurance with collision, comprehensive and gap coverage. After an accident totaled her car, collision coverage paid out $15,000 for physical damage because her car was only worth $15,000 at the time of the accident.

Her gap coverage paid off the rest of her $5,000 loan. If Sandy didn’t have gap insurance, she would have had to pay the remaining $5,000 out of pocket.

Who has the best gap coverage in Florida?

While it’s difficult to say which insurer will be best for you, compare a few standout new car and gap insurance perks from some of the top Florida insurers.

  • State Farm. Every State Farm Bank car loan includes payoff protection to cover your car if it’s totaled. And yes, that’s at no extra charge.
  • Allstate. This popular insurer’s new car replacement coverage gives you enough money after a total loss to buy a new car. You’re eligible for this coverage if your car is two years old or less.
  • Florida Credit Union. Offers loan protection for a total car loss or an option for loan payment protection if you become disabled and can’t pay.
  • Nationwide. Get the most out of your gap coverage with Nationwide’s diminishing deductible for safe drivers and new vehicle discount.

    How do I buy gap insurance in Florida?

    You can buy gap insurance through your insurance company, a dealership or banks or credit unions. When shopping for gap insurance, consider the cost, features, benefits and convenience of your gap coverage options:

    • Insurance company. Gap coverage through an insurer could mean cheaper premiums, but may have a deductible.
    • Dealership. A dealer’s gap insurance may have higher upfront costs, but no deductible. Some dealers also offer to pay off loan amounts on a trade-in car, but some restrictions may apply.
    • Banks and credit unions. Financial companies like banks can sell this type of policy too, and may offer low premiums or extra features if you finance a car through them.

    Florida gap insurance laws

    Florida gap insurance is straightforward. However, the state does include a few laws that might affect this coverage:

    • Gap coverage must be sold by a licensed insurer. You should buy gap insurance from a company licensed by the Florida Department of Financial Services.
    • No-fault laws could affect court-goers. Florida’s no-fault law limits when drivers can take a claim to court since each driver files damage under their own insurance. While no-fault rules are unlikely to influence your gap coverage, it could affect your payout amount if you go to court for a severe accident.

    Bottom line

    Although not required, you might consider gap insurance to protect your wallet and ride from Florida’s inclement weather or a total loss accident. Compare gap coverage providers to find the best option.

    Frequently asked questions about gap insurance in Florida

    More guides on Finder

    • Nationwide SmartRide review

      Earn a discount on your auto insurance using collected data about your safe driving habits.

    • Allstate Drivewise review

      Earn rewards with this telematics program even if you aren’t an Allstate customer, though you can only receive a discount if you’re a policyholder.

    • At what age should you be allowed to start driving?

      A survey of 2,001 Americans by Finder found that roughly one-fifth (20.6%) of Americans said that they wanted the minimum driving age to be raised in their state.

    • Liberty Mutual RightTrack review

      New discounts for telematics can save drivers money on their car insurance.

    • The best debit cards for kids for 2021

      Support your child’s financial knowledge and teach the important real-life money skills in a safe and controlled way with a kids’ debit card.

    • Nationwide SmartMiles review

      Pay-per-mile car insurance can help you save money if you’re a low-mileage driver.

    • A beginner’s guide to cryptocurrency ETFs

      If you’re looking for ways to gain exposure to bitcoin and other digital currencies, cryptocurrency ETFs could be worth exploring. Find out what crypto ETFs are and how they work in this introductory guide.

    • B9 pay advance app review

      This pay advance app gives you access to your paycheck 15 days in advance. But with a $4.99 monthly fee, it may not be worth it for everyone.

    • Best robo-advisors of 2021

      These are our top robo-advisor picks for 2021 plus 3 honorable mentions.

    • Life insurance for people over 60

      While it’s common for Americans in their 60’s to either be retired or approaching retirement, there still may be some beneficial value in investing in a life insurance policy. Compare your options and learn what type of policy will most fit your needs as someone over 60.

      Ask an Expert

      You are about to post a question on finder.com:

      • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
      • finder.com is a financial comparison and information service, not a bank or product provider
      • We cannot provide you with personal advice or recommendations
      • Your answer might already be waiting – check previous questions below to see if yours has already been asked

      Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

      By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

      Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
      Go to site