Gap insurance applies every time your vehicle is stolen or destroyed in an accident. When you file a qualifying claim, your comprehensive or collision coverage will pay the actual cash value (ACV) of your vehicle, less the deductible. In that case, your temporary coverage coverage could pay the difference between the ACV of your vehicle and the outstanding balance of your loan or lease. If your temporary coverage includes a limit, it may only cover part of your outstanding balance if you owe much more for the vehicle than it's worth.
Keep in mind that distance coverage may not cover additional charges related to your loan, such as financial charges or excessive mileage charges. You can generally add temporary coverage to an existing car insurance policy or a new policy, as long as your loan or lease hasn't been paid off. Buying insurance to cover gaps in an insurance company can be less expensive and you won't have to pay interest on your coverage. If you already have car insurance, you can check with your current insurer to determine how much it would cost you to add temporary coverage to your current policy.
Keep in mind that you need comprehensive and collision coverage to add uncovered coverage to an auto insurance policy. Filing a car insurance claim can be a difficult process, and you're not the only one with questions about how things work. When there's a significant difference between the value of your car and what you owe for it, supplemental insurance is valuable protection. You can generally buy temporary coverage for a used or new car at any time, as long as the loan or lease isn't canceled, although some insurance companies may only offer a limited period of time to purchase coverage.
If you are not insured by Progressive or are a Progressive customer without logging in to your account, you can report or view an existing claim here. When you file your claim for uncovered insurance, you must provide documentation that shows the difference between what you owe for your car loan or lease and what the car was worth when it was stolen or destroyed. Gap insurance coverage bridges the gap between what you owe on your car loan and what your car is actually worth. If you have questions or aren't sure what to do, contact your car insurance company or GAP insurance provider, and they can help.
This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance policy. Gap insurance isn't required for any insurer or for any state, but some leasing companies may require you to buy it. If you're buying or leasing a new car, you can get temporary insurance from the dealer or your auto insurance company. After you file your car insurance claim, you can usually track the provisional insurance claims process until it's resolved.