Florida gap insurance: Everything you need to know

How much is gap insurance in Florida?

In Florida, gap insurance costs an average of $3,724 per year, but prices vary by company. Your car's value also affects the cost of gap insurance. Expensive or luxury cars depreciate faster than standard vehicles, so gap coverage may have to pay more, leading to higher rates.

Cheapest gap insurance companies in Florida

The cheapest gap insurance in Florida is offered by Travelers, with an average yearly cost of $2,782. Not all car insurance companies provide gap coverage, and rates can vary significantly among carriers.

Take a look at the table below to see the cheapest Florida insurance companies for gap coverage.

Company	Auto insurance rates with gap premium	Gap premium
Travelers	$2,782	$48
Progressive	$3,398	$34
Nationwide	$3,402	$138
Mercury Insurance	$4,206	$32
Allstate	$4,832	$49

Data updated in 2024

Read our methodology

Average gap insurance cost in Florida by city

Gap insurance costs the most in Hialeah, with an average rate of $4,315, while Avon Park has the lowest rate at $2,755. Where you live in Florida can impact your insurance costs. Cities with higher crime and theft rates have higher auto insurance rates since the risk of damage or theft is higher.

Here are the average gap insurance rates by city in Florida

City	Auto insurance rates with gap premium	Gap premium
Avon Park	$2,755	$50
Fellsmere	$2,774	$44
Deland	$2,871	$48
Bellair-Meadowbrook Terrace	$3,095	$52
Port St. Lucie	$3,098	$46
Palm City	$3,163	$46
Orlando	$3,218	$50
Jacksonville	$3,219	$54
Clearwater	$3,413	$47
St. Petersburg	$3,722	$52

Data updated in 2024

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How much is gap insurance in Florida by age group?

Gap insurance rates are higher for younger drivers because they have less experience and are more likely to take risks while driving, increasing the odds of a total loss. As drivers get older, their rates go down. For example, an 18-year-old pays an average of $13,041 per year, while a 25-year-old pays around $4,137 annually.

The table below lists the average gap insurance rates in Florida based on age.

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$13,041	$149
Young adult	$4,137	$68
Adult	$3,724	$60
Senior	$3,407	$53

Data updated in 2024

Read our methodology

How does gap insurance work in Florida?

When you buy or lease a new car, it depreciates quickly resulting in you owing more than it's worth. If your car is totaled, your insurance company will only pay its actual cash value, which might not cover your full loan balance. That's where gap insurance helps. If your car is totaled or stolen, gap insurance covers the difference between your car's value and what you still owe on the loan.

"Gap is designed for people that take long-term loans and/or roll taxes, service plans, or warranties into their loan," said Zack Pope, agency manager at David Pope Insurance in Missouri. "Most gap coverages only go a certain percent over market value to pay off a loan for a totaled vehicle (typically 25%). It costs significantly less money to get gap through your insurance than to purchase it from the dealership."

For example, let's say you have a $40,000 car loan, but your vehicle's actual cash value is only $35,000. If the car is stolen, your insurance company will reimburse you $35,000, minus your deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim.. Gap insurance would cover the remaining $5,000 that you still owe on your loan. Without gap insurance, you'd be responsible for paying this difference out of pocket.

You can drop gap coverage once your loan balance is below your car's value. While you can cancel gap insurance anytime, you may not be able to add it later. Most insurers require you to add gap coverage soon after buying a car.

Where to buy gap insurance in Florida

Many insurance companies, including major providers, offer gap insurance in Florida. You can add this coverage to your existing car insurance policy or buy a standalone policy.

The best way to get gap coverage is to add it to your auto insurance policy. Car dealers and lenders also offer gap insurance, but their policies are mostly expensive, making them less budget-friendly.

Methodology

Insurance.com commissioned gap insurance rates from Quadrant Data Services in late 2023 at a variety of ages in all 50 states and Washington, D.C. Base rates use a 40-year-old driver with a 2023 Honda Accord LX. Rates were gathered from 138 insurance companies in 1,468 ZIP codes.

Florida gap insurance: FAQs

Is gap insurance required in Florida?

Gap insurance isn't required by law in Florida, but your lender may require you to have the coverage.

Who should buy gap insurance in Florida?

If you have a car loan or lease in Florida, you might need gap insurance. If you made a small down payment, you could quickly owe more than your car is worth since vehicles lose value faster than you can pay the loan. In this case, gap insurance can be a smart choice.

You don't need gap insurance if you own your vehicle or make a large down payment so that you owe less than the car's value from the start of your loan.

What is standalone gap insurance in Florida?

Standalone gap insurance is a policy of its own, not connected with your car insurance. Gap insurance is available from your lender or a private company as a separate policy.

Does gap insurance cover leased cars in Florida?

Florida gap insurance covers leased cars where the driver owes more than the vehicle's current market value. Over time, you may remove gap coverage once your vehicle is worth more than what is owed.