Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific car insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. She also specializes in automa...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Car Insurance Agent for 15 Years

UPDATED: Mar 19, 2021

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A Brief Overview

  • If you finance a vehicle, 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 at an average of $5 per month or $60 annually
  • 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

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. But 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? Simply enter your ZIP code into our free quote tool to get free Florida auto insurance quotes.

How much is GAP insurance in Florida?

You might be wondering, 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 help cover the outstanding amount.

How much should you pay for GAP insurance considering the average cost of auto insurance in Florida is $390 per month or $4,680 annually? From a dealership, you will pay around 5 percent of the total value of your auto loan for GAP coverage. That can be a few hundred dollars, which you’ll also end up paying interest on over time.

How much does GAP insurance cost from an insurance provider? It’s not nearly as expensive if you go through your auto insurer. In most cases, including GAP insurance Florida costs, it is an average of an extra $100 per year on your policy. Some companies charge as little as $60 annually.

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 LevelAverage Annual Auto Insurance Rate
Minimum Coverage$3,895.05
Medium Coverage$4,835.40
Full Coverage$5,310.93
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While the auto insurance 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.

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.

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Where can I buy GAP insurance in Florida?

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, as previously discussed, it is usually cheaper and simpler to purchase GAP coverage through your insurer if it is offered 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
CompaniesGap Insurance Available
Allied P&CNo
AllstateYes
FarmersYes
GEICONo
InfiintyYes
Liberty MutualYes
Progressive SelectYes
State Farm Mutual AutoYes
TravelersYes
USAAYes
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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 GAP insurance and Liberty Mutual have specific requirements you must meet in order to be able to purchase the 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.

Ultimately, GAP insurance offers extra monetary protection to Florida drivers who are appropriately insured but who have taken out an auto loan. It can be bought through most national providers, even in the state of Florida.

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. How exactly do insurance providers determine the actual cash value of your vehicle?

Your car depreciates as soon as you drive it off the lot. According to Kelley Blue Book (KBB), after 5 years, cars retain an average of only 35 percent of their original value. In just the first month of ownership, your car loses a full 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 substantially 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, preventing you from needing to pay entirely out of pocket. 

Remember to drop your GAP insurance coverage once you’ve paid off enough of your auto loan and no longer owe more than its actual cash value.  

Is GAP insurance required in Florida?

While GAP insurance is not legally required in the state of Florida, it is often recommended by professionals to consumers who lease or finance a newer vehicle. 

Auto insurance laws vary by state. According to the Insurance Information Institute (III), 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.

Ultimately, 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 with your dealership to purchase GAP insurance. 

You will never be required to purchase that GAP coverage only through the dealership, however. 

Who needs GAP insurance in Florida?

Is GAP insurance worth buying? That depends on your unique situation. If you drive a 10-year-old economy sedan that is mostly paid off, you do not need this coverage. You also do not not GAP coverage if you own your vehicle outright. 

However, if you recently leased or financed a newer vehicle, GAP insurance should be at the top of your list of things to purchase.

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 for 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 that you no longer 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. It is also usually very affordable through an insurance provider. As we’ve already noted, it only costs an average of an extra $5 per month or $60 per year on your auto insurance policy.

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What are the 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. This remains imperative even if you’re only adding GAP coverage to your policy.

One way to analyze 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
CompaniesAM Best RatingFinancial Outlook
GEICOA++Stable
State Farm GroupA++Stable
Travelers GroupA++Stable
USAA GroupA++Stable
Allstate Insurance GroupA+Stable
Progressive GroupA+Stable
Liberty Mutual GroupAStable
Amtrust NGH GroupNot Available-
J. Whited Group (Windhaven)Not Available-
InFinanciality Prop & Casualty Insurance GroupNot Available-
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GEICO, State Farm, Travelers, and USAA lead the pack with A++ financial ratings. But any company with a rating of A- or better has a stable financial outlook. 

While your Florida GAP insurance rates will vary by company, any of the ones listed above with a stable outlook will be able to reliably pay out your GAP insurance claim, even in the event of an economic downturn. 

Even though not every company in Florida’s top 10 insurance providers list is rated, that doesn’t mean they’re not financially stable. It just means AM Best hasn’t rated them as of yet. Those companies may just be smaller or more local. 

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 the following table for your convenience. Take a look.

JD Power Satisfaction Ratings for Florida Auto Insurance Companies
CompaniesJD Power Overall Customer Satisfaction Index RankingJD Power Circle Rating
USAA8985
Allstate8475
Esurance8435
State Farm8343
GEICO8273
Met Life8202
Travelers8202
Auto-Owners Insurance8192
The Hartford8122
Progressive8092
Nationwide8052
Safeco7982
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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. GEICO lands within the middle of the group with a solid 3 circles rating. Further down is Travelers, Progressive, and Nationwide with only 2 circles. 

What are the cheapest auto insurance companies in Florida?

Of course, cost is one of the most important factors when it comes to choosing an auto insurance policy. 

If you’re wondering who has the cheapest auto insurance in Florida, take a look at the following 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
CompaniesAverage Annual Auto Insurance RateCompared 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
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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.

Remember, not all of these insurance providers sell GAP insurance in the state of Florida. Review the table above for information about what companies do.

Which auto insurance companies are the largest in Florida?

Knowing company size is another key 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
CompaniesMarket ShareDirect Premiums Written
GEICO24.44%$4,678,326
State Farm15.89%$3,042,871
Progressive15.84%$3,031,444
Allstate9.63%$1,842,800
USAA7.09%$1,357,367
Liberty Mutual3.22%$617,089
Travelers2.32%$444,623
Amtrust NGH2.16%$413,351
J. Whited (Windhaven)2.02%$385,885
InFinanciality Prop & Casualty Insurance1.86%$357,011
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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 does offer GAP insurance is State Farm. 

Remember State Farm is also one of the most affordable insurance providers in all of Florida.

How many auto insurance companies are available in Florida? There are a total of 1,067 insurance companies in your state. A total of 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.

Now that you’ve analyzed specific details about the top 10 auto insurance companies in Florida, you can see how important comparison shopping is. 

Seek out quotes from multiple different providers near you and compare the costs, coverage levels, and GAP insurance details. You might find that State Farm, the cheapest insurance in Florida, isn’t actually your best fit. You’ll never know unless you comparison shop.

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The Bottom Line: Gap Insurance in Florida

Our expert advice is to purchase Florida GAP insurance if you are financing a vehicle and you still owe more on the loan than the actual cash value of what your vehicle is currently worth.

While some consumers think they are saving money by leaving the GAP 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 only 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 could put you at a potential risk of significant financial loss if you total your car.

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?

Yes. Medical GAP insurance, Medicare GAP insurance in Florida and GAP health insurance in Florida can all 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 auto insurance rates in Florida. This includes the number of uninsured drivers in the state. 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. Seek out discounts and comparison shop to help keep your premiums low.

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

Full coverage affordable Florida auto insurance typically includes liability, collision, and comprehensive coverage, as well as any other legally required limits by the state of Florida.

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

Only you can answer this question, based on who you’re insured by and what you’re looking for. 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 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