Auto insurance with gap coverage

If your car is totaled in an accident and your auto insurance doesn’t have gap coverage, you could be left with an undrivable vehicle and a lease to pay.

What is depreciation?

When you purchase a vehicle, the value immediately decreases, which is known as depreciation. On average:

Green car icon, 20 percent of the icon shaded gray.

One year after purchase, a vehicle is worth about 20% less than its original value.

Green car icon, 60 percent of the icon shaded gray.

Most vehicles lose about 60% of their original value within the first five years.


What is gap insurance coverage?

Gap insurance covers the difference between what your auto insurance will cover and what you owe on your leased car.

You may owe more money than your car is worth if you have a loan or a lease, due to depreciation. If you are in an accident and your vehicle is not repairable, your standard auto insurance policy will only cover the actual value of your vehicle.

The passenger side door of a vehicle, damaged from an accident.

For example: You’re in an accident that’s covered by your insurance policy and your vehicle is unrepairable. You owe $15,000 on your vehicle’s loan, but the value of the vehicle is $10,000. After you pay your $500 deductible, your auto insurance policy will pay $9,500 for a total of $10,000, which is the actual value of the vehicle.

If you have auto insurance with gap coverage, it will cover the $5,000 difference to pay off your loan. If not, you will be responsible for the difference.

Do I need gap insurance?

If either of these questions apply to you, ask your independent agent about gap coverage:

  • Do you drive a leased or loaned vehicle?
  • Do you owe more than your vehicle’s market value?
Couple looks at new vehicles at a car dealership.

Built to cover the gaps in your policy

Ask your independent agent if you should consider adding gap insurance coverage to your Integrity auto insurance policy.

Find an agency

Coverages described herein may not be available in all states. Please contact a local independent Integrity agent for complete details on coverages and discounts. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies. For the coverage to apply, a claim must be made and reported during the policy period. Scenarios above are not actual claims. The material provided above is for informational, educational, or suggestion purposes and does not imply coverage. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED. Integrity Insurance policies are underwritten by Integrity Insurance Company, an affiliate of Grange Insurance Company, and Integrity’s subsidiaries. Integrity companies not licensed in Pennsylvania.