Gap Insurance Florida Drivers Should Know About

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A Brief Overview
  • Florida GAP insurance covers the outstanding balance that remains in the event that your car is totaled and you owe more on your auto loan than the actual cash value of your vehicle.
  • GAP insurance in Florida can be purchased from an insurance provider, the dealership, or even stand-alone companies. However, the cheapest Florida GAP insurance rates come from insurance providers.
  • You can drop GAP insurance from your Florida auto insurance policy after you pay off enough of your loan so your vehicle is worth more than your remaining balance.

The average cost of auto insurance in Florida is $390 per month or $4,680 annually. Do you live in Florida and recently finance or lease a new car? Then read our guide all about GAP insurance Florida drivers should know about.

What is GAP insurance in Florida? Guaranteed asset protection, or GAP insurance, is protection you can purchase in the event that your vehicle is totaled and you owe more on your loan than the actual cash value of your car.

Not only will you learn the importance of GAP insurance coverage, but we’ll dive into everything you need to know about Florida GAP insurance companies, costs, requirements, and more.

Looking to buy Florida GAP insurance and can’t wait to get started? Enter your five-digit ZIP code into our FREE quote tool above to get a free Florida auto insurance quotes.

How much is GAP insurance in Florida?

You might be wonder, what does GAP insurance cover? Let’s say you bought the car of your dreams, a brand new shiny red convertible perfect for cruising Ocean Drive in South Beach.

You get your financing in place, make sure you have the insurance you think you need, and drive off the car lot. The next morning when you go out to drive that new car down by the beach, you find out someone else liked your car too—enough to steal it.

When you go to settle your claim with your insurance company and the lender who issued the car loan, you notice a discrepancy. What the auto insurance policy provider paid the bank was the car’s actual cash value, which included the depreciation on the vehicle that occurred when you drove it off the lot.

You are now stuck with an outstanding car loan amount that must come directly out of your pocket, for a car you can no longer even drive. This is where GAP insurance for Florida cars comes in. If you have GAP insurance, it will cover the outstanding amount.

How much should you pay for GAP insurance?

The average cost of auto insurance in Florida is $390 per month or $4,680 annually. But how much does GAP insurance cost in Florida? From a dealership, you will pay around 5 percent of the total value of your auto loan for GAP coverage. However, from an insurance provider, it’s not nearly as expensive.

So if you’re looking for cheap GAP insurance, you’re in luck. Purchasing GAP insurance through your auto insurance company and simply adding it to your policy is typically the most affordable way to obtain GAP insurance.

In most cases, including GAP insurance Florida costs, it is an average of an extra $100 per year on your policy. However, it is important to note that in order to purchase GAP insurance, you’ll likely be required to have both collision and comprehensive coverage on your policy. These policies provide more robust coverage for you and your vehicle but are not required by state law.

Fuller coverage policies will always cost more than basic, liability-only policies. See how much the additional coverage might cost you in the table below.

Florida Average Annual Auto Insurance Rates by Coverage Level
Auto Insurance Coverage Level Average Annual Auto Insurance Rate
Minimum Coverage $3,895.05
Medium Coverage $4,835.40
Full Coverage $5,310.93

While the costs are higher, they are worth it. If you purchased a brand new vehicle, a liability-only insurance policy would not be enough coverage to fully protect your new assets.

Your liability insurance only pays for damages to the other driver as a result of an accident you caused.

Collision and comprehensive insurance will protect damages caused to you and your vehicle when you’re not at fault. Collision insurance comes into play if you get hit by another vehicle, or if you hit a tree or pole. Comprehensive insurance covers weather damage, acts of nature, damage by animals, vandalism, and even theft.

Average Florida Gap Insurance Coverage

While you have many options for purchasing auto insurance in Florida, not all companies offer GAP insurance. You can purchase GAP insurance through both auto insurance companies and car dealerships. AAA GAP insurance in Florida is another option for purchasing coverage.

However, it is cheaper and often simpler to purchase through your insurer, if they offer it because you can simply add it to your existing policy.

If you are wondering what companies provide GAP insurance in Florida, take a look at the table below to find out.

Major Florida Auto Insurance Companies that Offer Gap Insurance
Companies Gap Insurance Available
Allied P&C No
Allstate Yes
Farmers Yes
GEICO No
Infiinty Yes
Liberty Mutual Yes
Progressive Select Yes
State Farm Mutual Auto Yes
Travelers Yes
USAA Yes

Does USAA sell GAP insurance in your state? As you can see, yes, the military-only insurance company does offer this service.

In some cases, there are specific requirements insureds must meet in order to purchase GAP insurance from a specific company. In other cases, the coverage is available for any policyholder.

For example, Progressive GAP insurance is available to all drivers insured through the company. But State Farm and Liberty Mutual have specific requirements you must meet in order to be able to purchase the GAP coverage.

For State Farm, GAP insurance is only provided alongside a car loan obtained through the company’s auto loan program. If you use Liberty Mutual, you can’t get GAP insurance for leased vehicles, only for those you’re purchasing.

For a little more information on GAP insurance, watch this video.

Gap insurance offers this protection to Florida drivers who are appropriately insured. Read through the next several sections to learn more about GAP insurance requirements in Florida, why it’s a good idea, and more.

How does GAP insurance work in Florida?

GAP insurance in Florida works the same as it does in any other state. The policy will fill in the gaps between what you still owe on your auto loan and the actual cash value of your car in the event your financed or leased car is totaled.

Most auto insurance policies only pay out on the actual cash value of your vehicle, which is usually less than the total value of your loan. What is the actual cash value? Take a look at this video to learn more.

Your car depreciates as soon as you drive it off the lot. According to Kelley Blue Book, after 5 years, cars retain only 35 percent of their original value. In the first month of ownership, your car loses 10 percent of its original value.

Because insurance providers factor in depreciation when calculating the actual cash value of your vehicle, sometimes the payout from the insurance company is lower than what you owe on the vehicle.

In that case, your GAP insurance would pay the remainder of the money you owe to your lender for the vehicle.

Is GAP insurance required in Florida?

Auto insurance laws vary by state. According to the Insurance Information Institute, those state minimums are usually liability-only policies. While 49 states legally require drivers on the roads to carry a specific level of auto insurance, none of the state laws include GAP insurance.

Therefore, GAP insurance Florida laws are limited because it is not required by the state. That being said, the state does allow companies through which you’ve financed your car loan to require you to purchase GAP insurance, under the terms of the loan.

In other words, if you’re leasing or financing your car in Florida, you might be required under the terms of your loan contract, to purchase GAP insurance.

Why do I need GAP insurance in Florida?

Is GAP insurance worth buying? Remember the scenario we considered in which you bought your dream sports car? You park it at home, only to find it’s been stolen the very next day. Or, what if not long after taking it home, you wreck and total the car.

In either scenario, you find out the auto insurance policy you have doesn’t cover everything you thought it would. Though most of the car is paid by your insurer, you are left with an outstanding balance on your auto loan. Now you get to pay for that difference entirely out of pocket. To make things worse, you are paying for a car you don’t even have.

If you purchase GAP insurance, that coverage will pay this difference instead.

Gap insurance may be important on a new vehicle for a number of reasons, including if it is financed for five or more years, if it depreciates quickly, if your down payment was less than 20 percent of the total value of the vehicle, or if it’s leased.

Gap insurance may save you big in the long-run, and as we’ve already noted, only costs an average of an extra $5 per month or $60 per year, on your auto insurance policy.

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Best Florida GAP Auto Insurance Companies

Now that you know some details about GAP insurance, we’ll take a few moments to discuss which Florida auto insurance companies may be best for you, so you can get the best auto insurance for your specific coverage and GAP insurance needs.

We’ll also take a look at Florida GAP insurance companies, where you can purchase GAP insurance, and more, so keep reading.

What are the financial ratings of the largest auto insurance companies in Florida?

If you’re shopping for auto insurance, you want to know that the company you’re considering purchasing a policy from is both currently financially stable and has a solid financial outlook.

One way to do this is to look at financial ratings from AM Best, which is a global credit firm that rates companies in the insurance industry. Take a look at this table to see how AM Best rates the 10 largest insurance companies in Florida.

AM Best Financial Ratings for Florida Auto Insurance Companies
Companies AM Best Rating Financial Outlook
GEICO A++ Stable
State Farm Group A++ Stable
Travelers Group A++ Stable
USAA Group A++ Stable
Allstate Insurance Group A+ Stable
Progressive Group A+ Stable
Liberty Mutual Group A Stable
Amtrust NGH Group Not Available -
J. Whited Group (Windhaven) Not Available -
InFinanciality Prop & Casualty Insurance Group Not Available -

Any company with a rating of A- or better has a stable financial outlook. While not every company in Florida’s top 10 is rated, that doesn’t mean they’re not financially stable, it just means AM Best hasn’t rated them as of yet.

Which auto insurance companies have the best ratings in Florida?

Another piece of information you may want to keep in mind when shopping for auto insurance is customer satisfaction. If you’re in a car accident or even just have a question about your coverage, you want to know that your insurer has a good reputation for customer service.

J.D. Power provides customer satisfaction ratings for auto insurance companies across the country. We’ve summarized their data in this table. Take a look.

JD Power Satisfaction Ratings for Florida Auto Insurance Companies
Companies JD Power Overall Customer Satisfaction Index Ranking JD Power Circle Rating
USAA 898 5
Allstate 847 5
Esurance 843 5
State Farm 834 3
GEICO 827 3
Met Life 820 2
Travelers 820 2
Auto-Owners Insurance 819 2
The Hartford 812 2
Progressive 809 2
Nationwide 805 2
Safeco 798 2

The customer satisfaction index rating is based on a 1,000-point scale, while the JD Power Circle Rating™ structure is as follows:

  • Five circles – Among the best
  • Four circles – Better than most
  • Three circles – About average
  • Two circles – The rest

As you can see, USAA and Allstate have the best customer satisfaction ratings in the state.

What are the cheapest auto insurance companies in Florida?

If you’re wondering who has the cheapest auto insurance in Florida, take a look at this table, which outlines the average annual rates for Florida drivers, compared to the state average of $4,680.46.

Florida Average Annual Auto Insurance Rates by Company
Companies Average Annual Auto Insurance Rate Compared to Florida State Average Rate
USAA $2,850.41 -$1,830.05
State Farm $3,397.67 -$1,282.79
GEICO $3,783.63 -$896.83
Allied P&C $4,339.60 -$340.86
Liberty Mutual $5,368.15 $687.69
Progressive $5,583.30 $902.84
Allstate $7,440.46 $2,760.00

As you can see USAA auto insurance in Florida is the cheapest available coverage. However, as this is not available to all drivers, the next cheapest is State Farm.

Which auto insurance companies are the largest in Florida?

Knowing company size is another factor to consider when determining which insurance company is best for your needs. Take a look at this table to see the largest companies in Florida based on market share and premiums written.

Florida Auto Insurance Companies by Market Share
Companies Market Share Direct Premiums Written
GEICO 24.44% $4,678,326
State Farm 15.89% $3,042,871
Progressive 15.84% $3,031,444
Allstate 9.63% $1,842,800
USAA 7.09% $1,357,367
Liberty Mutual 3.22% $617,089
Travelers 2.32% $444,623
Amtrust NGH 2.16% $413,351
J. Whited (Windhaven) 2.02% $385,885
InFinanciality Prop & Casualty Insurance 1.86% $357,011

Can you get GEICO GAP insurance in Florida? No, but we can help you find out where to buy GAP insurance.

GEICO is the largest insurance company in the state by a significant margin but it doesn’t offer GAP coverage. However, the largest company that currently offers GAP insurance is State Farm. We’ll discuss which other Florida companies offer GAP insurance in a later section.

How many auto insurance companies are available in Florida? There are a total of 1,067 insurance companies in Florida. 114 of the companies are domestic, meaning they are incorporated within the state.

Another 953 of the companies are foreign, meaning they are incorporated somewhere outside of Florida.

The Bottom Line for Gap Insurance in Florida

While some consumers think they are saving money by leaving the GAP insurance coverage off of their policy, they could end up spending a great deal more to make up for where the out-of-pocket expenses come in, should a collision occur.

Additionally, keep in mind the cost of GAP insurance is fairly low. On average, it adds around  $60 per year or less to your existing auto insurance policy. That’s only $5 per month.

Ultimately, you won’t save very much money by not purchasing GAP insurance coverage, but it will put you at a potential risk of significant financial loss.

Unless you have money put aside to cover the difference between the value of your car and the actual loan amount owed, you are taking a gamble by not having GAP coverage.

Ready to purchase GAP insurance in Florida? A phone number and a quick call to your insurance company or dealership is a great way to start.

Frequently Asked Questions: GAP Insurance Florida Drivers Should Know About

You are now an expert on Gap insurance Florida drivers should know about. Refer back to this guide as much as needed while you comparison shop for your best auto insurance rates.

Do you still have questions about GAP insurance in Florida? Read through these frequently asked questions to learn even more.

#1 – Can I buy medical GAP insurance in Florida?

Medical GAP insurance, Medicare GAP insurance in Florida and GAP health insurance in Florida can be purchased to cover the difference between your existing health or Medicare coverage and the actual cost of your medical care, so you don’t have to pay out-of-pocket.

#2 – Does Gap Insurance always payout?

Typically yes, but you may find that GAP insurance for Florida car and vehicle drivers does not always cover the full difference between the actual cash value of your totaled or stolen vehicle and the amount you owe on your loan. This is particularly true if you’ve modified the vehicle in any way post-purchase, as most GAP insurance policies only cover factory parts.

#3 – Does insurance follow the car or the driver in Florida?

Florida state statutes indicate that personal auto insurance typically follows the vehicle and then the driver. This means if you’re driving someone else’s vehicle and you end up in a car accident, their auto insurance should cover the damages.

#4 – Why is Florida auto insurance so expensive?

There are a number of factors that affect rates in Florida. This includes the number of uninsured drivers. Florida is ranked number one in the country, with 26.7 percent of drivers uninsured in the state, according to the Insurance Information Institute.

The weather, traffic, and the number of high-risk drivers in the state also impact Florida’s average auto insurance rates.

#5 – What is considered full coverage auto insurance in Florida?

Full coverage affordable Florida auto insurance typically includes liability, collision, and comprehensive coverage.

#6 – Who offers the best GAP insurance in Florida?

Only you can answer this question, based on who you’re insured by, what you’re looking for, etc. As we’ve already noted, it’s typically cheaper to purchase GAP insurance through your auto insurance company, rather than through a dealership.

Why wait to get affordable Florida GAP insurance quotes and auto insurance premiums? It only takes a minute to enter your five-digit ZIP code into our online quote tool below and get FREE Florida auto insurance rates before you go.

References:

  1. https://mediaroom.kbb.com/press-releases?item=105717
  2. https://www.iii.org/article/background-on-compulsory-auto-uninsured-motorists

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