Gap Insurance in Utah (2025)
Even though Utah doesn’t require gap insurance, it might be a good idea if you lease or finance a car.
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If your car is totaled, your insurance company will likely pay the vehicle’s actual cash value (ACV) for your claim. But if you leased or financed your car, you may owe more on it than its ACV. Gap insurance covers the difference between what your car is worth and how much you owe on the loan or lease.
The national average cost of a full-coverage auto policy is $182 per month, Insurify data shows. Adding gap coverage to your full-coverage policy only costs about $2 extra each month.
Gap insurance also might make sense if you made a small down payment or have a long repayment term. Here’s what you need to know about gap insurance in Utah, including the best insurance companies for this important type of coverage.
How gap insurance works
Gap insurance stands for “guaranteed asset protection.” It covers the difference between your car’s actual cash value and the amount you owe on it.
For example, imagine you finance an SUV and have a $40,000 loan. One year later, you still owe $35,000 for the car, and you get in a bad accident and total it. The appraiser determines that the current value of your car is $30,000, which is what your insurance company will pay your finance company.
You must find a way to pay the remaining $5,000 that you owe the lender. Gap insurance would cover the remaining $5,000, allowing you to pay off your loan.
What gap insurance covers in Utah
Gap insurance pays the difference between what your car is currently worth and the amount you still owe if a covered event totals your car. It won’t cover normal wear and tear, mechanical breakdowns, or any claims your insurer doesn’t cover.
Gap insurance is most useful if you lease or finance a car and owe a lot of money on the vehicle, have a high-value car, or have a long loan term.1
Best gap insurance companies in Utah
Gap insurance is usually inexpensive, costing an average of $20 per year. The following insurance companies offer the most competitive rates for coverage.
USAA
Auto-Owners
Progressive
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 these insights, 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 Utah drivers.
Gap insurance vs. full coverage
Full-coverage policies don’t include gap insurance. Drivers in Utah must have the minimum amount of liability insurance, which includes bodily injury liability, property damage liability, and personal injury protection.3
Full-coverage car insurance includes the minimum amount of liability insurance, plus comprehensive and collision coverage — but it doesn’t include gap coverage. Comprehensive and collision insurance will cover various types of damage to your vehicle.
Gap insurance is typically an optional, add-on coverage, and whether you need it depends on how you pay for your car. If you have a high-value vehicle, owe a lot of money on your car, or finance or lease your vehicle, choosing full coverage and gap insurance might make sense.
Who needs gap insurance in Utah?
The state of Utah doesn’t mandate gap insurance coverage. But if you lease or finance a car, your leasing company or lender might require you to have it. Check with your lender about gap insurance requirements.
In most cases, drivers in the following situations would benefit from gap insurance:
Gap insurance isn’t always practical. You probably don’t need it if you don’t have a loan or lease on your car. You can also skip the additional coverage if your vehicle isn’t worth much or you have a low loan balance.
If you’re not sure whether you need gap insurance, consult with a car insurance agent or auto loan lender for more information.
How to buy gap insurance in Utah
You can work with a car dealership or insurance company to buy gap insurance in Utah. Even though you can purchase coverage from the dealership where you buy your car, buying it through your insurance company is usually cheaper.
You can get gap insurance as an add-on policy, and it usually costs less than $20 per year. Most major insurance companies offer gap insurance, but double-check with the insurer before securing a policy.
Gap insurance in Utah FAQs
Here’s some additional information about gap insurance coverage in Utah that can help you decide whether this type of insurance makes sense for your situation.
Does Utah require gap insurance?
No. The state of Utah doesn’t require gap insurance. You must have an insurance policy that meets the state’s minimum required coverage amounts for bodily injury liability, property damage liability, and personal injury protection. You can choose to add more coverage, including gap insurance.
How does gap insurance work in Utah?
Gap insurance in Utah is pretty straightforward. You can buy a gap insurance policy from the dealership where you get your car or get an add-on policy from your insurance company. It’s typically cheaper to work with an insurance company. Drivers pay an extra $20 per year for coverage, on average.
What does gap insurance cover?
Gap insurance covers the difference between your car’s current actual cash value and the amount you owe on your loan or lease. Often, drivers owe more than their car is worth. If the vehicle is a total loss or stolen, gap insurance pays for the difference. Some insurance companies offer slightly different versions of gap insurance, so it’s essential to understand your coverage.
Is gap insurance worth it?
Gap insurance is often worth the extra expense if you have a new car with a small down payment or long repayment term. Many lenders require gap insurance if you lease a vehicle. The cost of coverage is usually small — about $2 extra per month.
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