How much is gap insurance in Florida?

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Drivers in Florida pay $2,757 per year for gap insurance – $860 more than the national average.

Gap insurance, available from top insurers like Nationwide and Travelers, helps protect drivers who lease or finance their vehicles. If your car is totaled or stolen, it covers the difference between its value and what you still owe on your loan or lease. Some insurers may refer to it as loan or lease payoff coverage.

Your state affects how much gap insurance costs. In Florida, the average rate is $2,757 per year, or about $230 per month.

Key Takeaways

In the event of a total loss, gap insurance covers the difference between what you owe on your car loan and its actual cash value.
Gap insurance is available as a standalone policy or on auto insurance policies that include both comprehensive and collision coverage.
The average cost of gap insurance in Florida is $2,757.

What is gap insurance?

Gap insurance is optional vehicle insurance coverage that helps pay off an auto loan or lease if your vehicle is totaled or stolen and you owe more than the car’s depreciated value.

Most car buyers finance their vehicles by taking out a loan. But it’s easy to forget that cars depreciate as soon as they’re driven off the lot. Often, owners are driving vehicles that are worth less than what they owe their finance company.

If that car is totaled, the owner’s comprehensive or collision insurance reimbursement will be based on the vehicle’s actual cash value, not the loan balance. If the actual cash value is below the loan balance, the owner is responsible for the difference.

However, gap insurance can make up the difference.

“When an accident or theft occurs, a driver usually gets paid out on the vehicle’s cash value from their standard insurance coverage,” says Richard Howe, a car accident attorney in Atlanta. “However, without gap insurance, you will still be on the hook for the remaining amount in your agreement. Gap insurance provides peace of mind to drivers that they will be financially protected.”

“For instance, let’s say your car is totaled and the actual cash value is determined to be $15,000. However, you still owe $20,000 on your loan. Traditional auto insurance would only cover up to the actual cash value, leaving you with a $5,000 deficit,” says Howe.

“But if you have gap insurance, this difference would be covered, relieving you of the financial burden.”

Average cost of gap insurance in Florida

What you pay for gap insurance will depend on your carrier, the state you live in, the make and model of the car you insure, as well as other factors. The average cost of gap insurance in Florida is $2,757 per year, or $230 per month.

“Gap insurance is an optional coverage that is usually very reasonably priced, typically less than $100 per year in additional premium when added as an endorsement to your existing auto insurance policy,” says Mark Friedlander, senior director of media relations at the Insurance Information Institute (Triple-I), an insurance industry trade group.

“Gap insurance rates are based on the amount of your loan or lease agreement. It is typically not based on other common rating factors such as credit record.”

Cheapest gap insurance companies in Florida

In Florida, Nationwide provides the most affordable gap insurance, at $2,288 per year or $191 each month. On the other hand, Allstate has the highest premiums at $3,618 annually or $302 monthly.

The chart below shows the average annual cost of gap insurance from various insurers in Florida.

Company group	Average annual premium	Gap premium
Nationwide	$2,288	$138
Travelers	$2,404	$48
Progressive	$2,936	$34
Farmers	$3,340	$79
Mercury Insurance	$3,390	$32
Allstate	$3,618	$49

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How much is gap insurance per month in Florida?

The monthly cost of gap insurance can vary, but here’s what you can typically expect to pay:

Company group	Average monthly premium	Monthly gap premium
Nationwide	$191	$12
Travelers	$200	$4
Progressive	$245	$3
Farmers	$278	$7
Mercury Insurance	$283	$3
Allstate	$302	$4

Gap insurance rates in Florida’s top cities

Your location can greatly impact the cost of gap insurance. The table below highlights the average yearly cost in the top metro areas across Florida.

City	Avg. annual car insurane premium	Annual gap insurance cost
Fort Lauderdale	$3,238	$64
Hialeah	$3,437	$82
Jacksonville	$2,750	$58
Miami	$3,426	$81
Orlando	$2,888	$53
Port St. Lucie	$2,871	$47
St. Petersburg	$2,963	$54
Tampa	$3,192	$61

Gap insurance rates for different vehicle types

The type of vehicle you drive also impacts how much you pay for gap insurance.

“Luxury cars, sports cars, and SUVs – typically with higher purchase prices – might also come with higher gap insurance premiums. That’s because these vehicles tend to depreciate at different rates compared to standard sedans or compact cars, posing a greater risk to insurers,” Howe says.

The age of your vehicle is also a key factor in determining gap insurance rates.

“Newer vehicles, which depreciate more rapidly in the first few years, represent a higher risk for insurers offering gap coverage. As a result, a brand-new car might attract a higher gap insurance premium compared to a model that is several years old,” Howe says. “This reflects the insurer’s risk assessment, considering the steeper depreciation curve and the greater likelihood of a significant gap needing coverage soon after the purchase.”

When does gap insurance expire?

If you’re still paying off your car or leasing it, gap insurance can give you peace of mind in case it’s totaled and you owe more than it’s worth.

“However, Gap insurance is typically most relevant during the first few years of new car ownership,” Howe says.

That’s usually when you owe more on your loan than the car is worth.

“Most car buyers benefit from gap insurance when the vehicle is less than three model years old. This coverage is usually aligned with the duration of the car loan or lease, often making it unnecessary beyond a few years because the loan balance decreases to fall below the car’s actual cash value,” Howe says.

It’s a good idea to cancel gap coverage when your loan balance is lower than your car’s actual cash value – in fact, many insurers will cancel this coverage after a few years for this exact reason.

Where to buy gap insurance

There are three main ways to buy gap coverage, each with a different cost and set of rules.

Your auto insurance company: Many national and regional insurers offer gap coverage as an add-on to your regular car insurance policy, typically costing between $20 and $40 annually. Since it’s bundled with your policy, you can drop it once your loan balance is lower than your car’s current value.
Dealership: Gap insurance is usually offered by finance managers for anywhere between $400 and $700, and the cost is often rolled into your loan. While it’s convenient, this option tends to be the priciest because you’ll likely pay interest on it over time.
Banks and credit unions: Some banks and credit unions offer gap insurance as a standalone policy. It is usually affordable, but the cancellation rules vary – some providers refund unused premiums, while others don’t.

Pro tip:

If you’re leasing, review your lease agreement first. Many lessors automatically include gap protection. Buying it twice will not add extra coverage; it will just add extra cost.

Before committing, compare prices, ask about cancellation terms, and check for extras such as deductible reimbursement. A quick side-by-side quote can save you hundreds over the life of your loan or lease.

The bottom line

Gap insurance offers valuable peace of mind for drivers with financed or leased cars, especially during the first few years when depreciation outpaces loan repayment. Because rates vary based on where you live, your vehicle, and other personal factors, comparing quotes from different insurers is essential.

Weigh the cost against the potential risk, and ask your insurer or agent to clarify any details. Making an informed choice now can help you avoid financial stress later.

Methodology

Insure.com commissioned Quadrant Information Services in 2023 to get annual and monthly gap insurance rates for male and female drivers aged 40 who drive a Honda Accord LX with a clean driving record and good insurance score and carry a full coverage car insurance policy with limits of 100/300/100 and $500 comprehensive/collision deductibles.

To evaluate the rates, we have compared 53,409,632 insurance records from 170 insurance companies across 29,152 cities and 34,588 ZIP codes across the nation.

Frequently asked questions

Does gap insurance cover theft in Florida?

Gap insurance will protect you if your vehicle is stolen and not recovered. It will also protect your vehicle if it is stolen and recovered but severely damaged to the point of being regarded as “totaled” by your insurer, per Mark Friedlander with the Insurance Information Institute. However, be aware that gap insurance does not typically cover the deductible portion of your comprehensive insurance policy.

Should I get gap insurance in Florida?

Gap insurance is recommended so long as you have a loan or lease to cover the difference between what is owed and the depreciated value of your vehicle, according to Mark Friedlander with the Insurance Information Institute.

He recommends considering purchasing gap insurance if you have made less than a 20% down payment on the purchase of your vehicle; if you have financed the purchase for 60 months or longer; if you are leasing the vehicle (gap insurance may actually be required under the terms of a lease agreement); or if you have rolled over negative equity from an old car loan into a new loan.

Shivani Gite

Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.