Best Cheap Gap Insurance Companies in Connecticut: Quotes, Discounts (2023)

Gap Insurance in Connecticut

Filing a total loss claim can get even more stressful when you realize that you still have to continue making monthly payments to pay off your car loan. Gap insurance coverage helps you protect yourself from having to make auto loan payments on a car you no longer own. Use Insurify to find the cheapest gap insurance policy in Connecticut with the most coverage in under five minutes.

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Best Companies for Gap Insurance in Connecticut

There are multiple auto insurance companies in Connecticut that offer gap insurance, but Insurify uses the latest AI technology to find the best ones. Car insurance costs at these car insurance companies vary greatly, going as low as $210 and as high as $493 per month, which goes to show how important it is to get multiple quotes before you buy.

See More: Cheap Car Insurance in Connecticut

What is gap insurance?

If your car is stolen or totaled, your auto policy won’t cover what your car’s value was when you bought it—it will cover its actual cash value (ACV) at the time of the accident. However, you will still owe the original amount to your lender. Gap insurance stands for “guaranteed asset protection” and covers the difference between the ACV and what you owe on your vehicle.

Gap insurance protects you so you don’t have to keep paying off a car you no longer drive. For example, you finance $20,000 for a new vehicle. In a year, its actual cash value goes down to $14,000, but you still owe $18,000 on it. If your vehicle is totaled or stolen, your car insurance coverage will pay you the ACV—$14,000—and you’ll still owe $4,000 on a car you no longer own.

Gap insurance covers the difference between your car’s actual cash value and your loan balance so you can start looking for a new vehicle without any financial obligations holding you back.

Who should buy gap insurance in Connecticut?

You don’t need gap insurance if you’re not financing your vehicle. However, if you are financing your vehicle, there is a high chance that you will have negative equity—meaning you owe a higher amount on your car than what it is actually worth, also known as being “upside down”—and will end up with high out-of-pocket expenses in the event of an accident if you don’t have gap insurance.

Additionally, consider adding gap insurance to your full coverage in the following circumstances:

• You made a down payment of 20 percent or less. If you make a low down payment, your new vehicle’s actual cash value will depreciate faster and more significantly.

• You have a long-term loan or leasing obligation. If you know it is going to take you over 60 months to pay off your car loan, there’s a higher probability you will end up owing more on it than it’s actually worth.

• You are planning on using your car to drive long distances. Regularly covering a large number of miles will make your vehicle’s actual cash value decrease more rapidly. As a result, there is a higher chance that you will end up “upside down” on your car.

• You have a luxury or sports car. Certain car models, such as luxury and sports cars, depreciate much faster than more standard models. If you’re financing a luxury or sports car, your chances of negative equity go up significantly.

• Your loan already includes negative equity from your last car. If your loan rolled over, get gap insurance now to protect yourself against even higher out-of-pocket costs in the event of a car accident or theft.

Connecticut Gap Insurance Laws

Even though Connecticut insurance laws do not require drivers to carry gap insurance, it’s possible that your lending institution will. As a driver in Connecticut, you are only required to carry the minimum amount of underinsured/uninsured motorist coverage and liability coverage, both in bodily injury and property damage.

If your lender requires gap insurance, you’ll also have to purchase comprehensive coverage and collision coverage—you can only get gap insurance as an add-on to full coverage. But buying auto insurance coverage doesn’t have to break the bank. Use Insurify, an AI-powered comparison tool, to find the best coverage for you and save an average of $489 a year.

How much gap insurance do I need in Connecticut?

How much gap insurance you need to purchase in Connecticut depends on how fast you expect your car model to depreciate, how much you owe on it, and your personal preference. On average, you can expect your vehicle’s actual cash value to go down over 60 percent in just five years.

If you want personalized suggestions on how much gap insurance coverage you need to feel safe behind the wheel in your particular situation, use Insurify.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Connecticut

You can only purchase gap insurance as an add-on if you already have comprehensive and collision insurance coverage. Moreover, it only covers the negative equity—the difference between what you owe on your car and its actual cash value—in the event of a total loss or theft. If your vehicle needs repairs, you can use your comprehensive and collision coverage.

Gap insurance works regardless of fault but doesn’t cover hospital bills or lost wages.

How Much Gap Insurance Costs in Connecticut

The average monthly car insurance cost for a leased vehicle in Connecticut is $298. Your gap insurance costs depend on where and how you get your coverage since you can get it from your car dealership, a bank, or as a stand-alone policy from an auto insurance company, in addition to adding it on to your existing car insurance policy.

However, getting gap insurance coverage from the dealership, your bank, or a new auto insurance company comes with high costs. The easiest way to get a cheap gap insurance policy is as an add-on to your existing car insurance policy.

How to Buy Gap Insurance in Connecticut

According to Insurify data, you need to get at least four quotes from different car insurance companies to find a car insurance policy with the best coverage, deductibles, and premiums. However, shopping for car insurance on your own can take hours of your time and effort.

You’d have to research which car insurance companies in Connecticut offer gap insurance, answer the same questions over and over every time you want to request a quote, and then study all the information you’ve received to find the best deal. Plus, shopping for car insurance on your own can make you a target to unwelcome cold calls and spam emails.

Instead, spend five minutes on Insurify’s trusted site answering simple questions about yourself, your vehicle, and your coverage preferences only once, and get instant access to 10+ auto insurance quotes that are tailor-fit to your preferences and needs. Compare these quotes side by side, pick the best deal for you, and buy online or over the phone!

Frequently Asked Questions: Gap Insurance in Connecticut