Gap Insurance in Nevada (2025)

Gap coverage is a type of car insurance you might consider if you finance or lease your vehicle. In the event of an accident, it covers the difference between the car’s value and the amount you still owe on the vehicle.

Gap insurance isn’t part of standard insurance policies; you’ll need to purchase it separately — either from the car dealership or your insurance company. Here’s what you should know about gap insurance in Nevada.

How gap insurance works

Gap insurance — which stands for guaranteed asset protection or guaranteed auto protection — covers the “gap” between what you owe on a vehicle and what it’s worth.

Gap insurance is helpful because cars depreciate quickly in value. The Insurance Information Institute (Triple-I) estimates that cars drop about 20% of their value in just the first year.1

Gap insurance ensures you’re not on the hook for tons of cash should you total your car before you can pay off your auto loan or lease.

What gap insurance covers in Nevada

Gap insurance in Nevada works the same as in any other state. It covers the difference between what you owe on the car and its worth if you total the car or someone steals it.

For example, if you total your car and it’s currently worth $10,000, but you still owe $12,000 on your loan, gap insurance would pay the $2,000 difference. Sometimes — but not always — gap insurance also covers the deductible you owe to your insurer.2 You’ll want to check with your insurer to be sure.

You might think gap insurance will cover repairs if you’re in a wreck, but that’s not the case. It also won’t cover injuries that you or your passengers sustain in an accident. Gap insurance is only for cases when there’s a complete loss, meaning you’ve totaled your car or someone stole it and it needs a full replacement.

Best gap insurance companies in Nevada

If you’re looking for gap insurance in Nevada, you have many companies to choose from. Here are the three best insurers that offer gap insurance and have low rates.

Allstate

Nationwide

USAA

Gap insurance vs. full coverage

Nevada auto insurance laws require you to have a minimum amount of liability insurance coverage: at least $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident, and $20,000 in property damage coverage.3

This is just the bare minimum, though. If you want complete coverage in the event of an accident, you’ll also want collision and comprehensive insurance. Insurers include collision and comprehensive insurance in a full-coverage policy, and the coverages pay for types of physical damage your car may suffer.

Nevada is an at-fault state, so you may also want to consider uninsured/underinsured motorist coverage (UIM coverage), which protects you if you’re in a wreck with an uninsured driver or in a hit-and-run. An additional coverage to consider is medical payments coverage, or MedPay, which helps pay any medical bills if you or a passenger injures themselves in an accident.

Unfortunately, even with these coverages, if someone steals your car or you total it, you may owe a lot if you have an outstanding balance on your loan or lease. Adding gap insurance would help protect you financially in this scenario.

Who needs gap insurance in Nevada?

Gap insurance isn’t a legal requirement in Nevada, but you may still benefit from buying it.

You might want to consider investing in gap insurance if you:

• Made a small down payment (less than 20%)

• Have loan terms of 60 months or longer

• Leased your car (some dealerships will require it)

• Have a car model that depreciates quickly

• Rolled negative equity from an old car into your new car loan

“Gap insurance is recommended as long as you have a loan or lease to cover the difference between what is owed and the depreciated value of the vehicle,” says Mark Friedlander, director of corporate communications at Triple-I. “Once your loan is paid off or you no longer have a lease, you should drop the coverage from your policy.”

How to buy gap insurance in Nevada

You can purchase gap insurance policies through the dealership where you buy your car or through an insurance company or agent. Car insurers typically charge less than dealerships.

If you purchase gap insurance at the dealership, it’ll be a stand-alone policy, and your dealer may allow you to roll it into your loan amount. If you purchase it through your insurance company, it’s an add-on coverage to your existing auto insurance policy.

“We always recommend that you add gap insurance to your current auto insurance policy versus purchasing stand-alone coverage from an auto dealer or leasing company, where coverage will cost substantially more,” Friedlander says.