Gap Insurance in Florida (2025)
Florida doesn’t require gap insurance, but it’s a good idea to buy it if you have a lease or car loan.
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When you lease or finance a vehicle in Florida, getting gap insurance can be beneficial. If you experience a total loss, like a car accident or a flood destroying your car, gap insurance pays the difference between your car’s value before the loss and the remaining amount you owe on the loan or lease.
The national average for full coverage is $206 per month in Florida. Gap insurance typically costs an additional $2 per month. Florida insurance laws don’t require gap insurance, but it can provide financial protection and give you some peace of mind.
Quick Facts
You can typically purchase gap insurance from your lender or insurance company.
Gap insurance covers the difference between your car’s actual cash value (ACV) and your auto loan balance in a covered total loss.
Adding gap insurance to your insurance policy costs around $20 per year, according to the Insurance Information Institute.1
How gap insurance works
Gap insurance is short for “guaranteed asset protection.” It’s an optional auto insurance policy that applies when your insurer declares your vehicle a total loss in a covered claim like an accident or theft. It covers the difference between the car’s actual cash value before the loss and what you still owe on the loan or lease.
Not all drivers need gap insurance coverage. It’s only necessary if you have a lease or finance your vehicle with an auto loan. Some lenders require gap insurance, particularly if you have a lease.
Because most lenders and leasing companies require drivers to purchase full-coverage car insurance, which includes collision and comprehensive coverages, you’ll first file a claim with your auto insurer. After you receive the initial claim settlement from your insurer, you’ll need to provide your gap insurance company with a statement verifying the car’s actual cash value (ACV) and how much you received for the loss.
Keep in Mind
Gap coverage doesn’t pay you. It pays off your loan or lease balance.
What gap insurance covers in Florida
Gap insurance in Florida covers the negative equity in your vehicle if your insurer declares it a total loss. Gap insurance doesn’t provide any protection for you, your vehicle, or anyone else’s vehicle. The only time gap insurance applies is when you total your car and owe more on the loan or lease than you receive in an insurance claim.
For example, imagine that a flood from a hurricane totals your car. The insurance company determines that your vehicle is worth $5,000, but you still owe $6,000 on your auto loan. In this case, you would put the $5,000 settlement toward paying off your loan, and your gap insurance would cover the $1,000 difference.
Remember, lease agreements or loan contracts don’t terminate if you total your car. You’re still responsible for paying the lender what you owe, even if the car is a total loss. Without gap insurance, you’d have to pay the difference out of pocket if you owed more than what you received in an insurance settlement.
It’s also important to know that most gap insurers cap the amount of money they’ll pay. For instance, Progressive will pay up to 25% of your vehicle’s value, though this amount can vary by state, and Allstate pays up to $50,000. So, if your totaled car were worth $5,000, Progressive would only pay a maximum of $1,250.
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Best gap insurance companies in Florida
Most national insurance companies offer gap insurance as an endorsement on your existing car insurance policy. Here are some of the best car insurance companies for gap insurance in Florida:
Travelers
Allstate
Progressive
Liberty Mutual
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 information, 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 Florida drivers.
Gap insurance vs. full coverage
In Florida, a full-coverage car insurance policy typically includes collision coverage, comprehensive coverage, liability insurance, and medical payments insurance. Full-coverage insurance doesn’t include gap insurance. You have to add gap insurance as an endorsement or purchase it as a separate policy.
If you lease or finance your car, the dealer will often require full-coverage insurance.2 Florida gap insurance can be a beneficial addition to a full-coverage insurance policy. Although a full-coverage policy will provide a settlement to replace your car after a total loss, it won’t cover the remaining balance on your loan.
Who needs gap insurance in Florida?
Florida insurance laws don’t require gap insurance. But it can be beneficial in various situations:
You lease your vehicle (sometimes required).
You have an auto loan and make a down payment of less than 20%.
Your auto loan term is five years or longer.
Your car depreciates more quickly than other vehicles.
Gap insurance isn’t necessary if you own your vehicle outright. And even if you need gap insurance now, you should be able to drop the coverage eventually. For instance, as you get closer to paying off your vehicle and have positive equity, you no longer need gap insurance.
If you’re thinking about buying gap insurance, consult a car insurance agent or an auto lender to get a quote.
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How to buy gap insurance in Florida
You can buy Florida gap insurance in two main ways. You can purchase a policy either through an insurance company or through your lender.
Many drivers get gap insurance by adding an endorsement to their full-coverage car insurance policy. You can usually add a gap insurance endorsement any time before your loan is paid off or your lease is up. But some insurers only allow you to add gap insurance during a certain time frame.
If you buy Florida gap insurance through a dealership or lender, it’s usually sold as a stand-alone policy. Sometimes, the lender rolls the cost into your monthly lease or loan payments.
Keep in Mind
If you buy gap insurance through a dealership or lender, you might only be able to get coverage when you initially sign your agreement. Plus, you may end up paying interest on the insurance payments.
Florida gap insurance FAQs
If you’re thinking about getting gap insurance in Florida, check out common questions other drivers ask for more information. You can also read Insurify’s guide on how to get more out of a total loss settlement.
Does Florida require gap insurance?
No. Florida’s minimum insurance requirements don’t include gap insurance.3
How much is gap insurance in Florida?
The cost of gap insurance in Florida depends on several factors, like your insurance company and the value of your vehicle. The Insurance Information Institute estimates that adding gap insurance to a policy costs $20 per year. You can get a quote from your insurance company or dealership to see how much you could pay for gap coverage.
Does gap insurance cover hurricane damage?
Gap insurance doesn’t cover hurricane damage. But if a hurricane or flooding totals your vehicle, gap insurance would cover the difference between your car’s value and what you owe on it.
Why is gap insurance a good idea?
Gap insurance is a good idea because it provides financial protection when you lease or finance a car. If you total your car or someone steals it, you still have to repay your lender. And without gap insurance, you’re responsible for the difference between the total loss settlement and the remainder of the auto loan.
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