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

Gap Insurance in Georgia

Even though Georgia state laws do not require drivers to carry gap insurance, purchasing a gap insurance policy is a smart choice for drivers who are financing their vehicles and want to protect themselves from high out-of-pocket costs in the event of a total loss car accident or theft. Compare gap insurance quotes today on Insurify.

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Best Companies for Gap Insurance in Georgia

Car insurance costs for leased vehicles in Georgia can vary significantly from provider to provider. Midvale Home & Auto, the cheapest car insurance provider on this list, offers average rates as low as $299 per month, while Infinity, the most expensive company in the table below, has average rates that go as high as $631 per month.

These average monthly costs are for leased vehicles in Georgia, so you can expect a gap insurance policy to raise them—but only slightly.

See More: Cheap Car Insurance in Georgia

What is gap insurance?

Gap insurance is an optional auto insurance policy that you can add on to your car insurance coverage to protect yourself from having to pay off your car loan balance if your vehicle is totaled or stolen. After you purchase a new car, its value goes down 20 to 30 percent within the first year, and in five years, the depreciation can reach over 60 percent.

As a result, your car’s actual cash value can be much lower than the amount you owe on it—this is also known as negative equity or being “upside down” on your car. In the event of a total loss or theft, your car insurance company will reimburse you for the actual cash value of your vehicle at the time of the accident—not for the original loan amount.

For example, you finance $30,000 for a new car. In one year, it’s now worth $21,000, but you still owe $26,000 to your lender. After a total loss, your auto insurance provider reimburses you for your vehicle’s ACV—$21,000—leaving you $5,000 in debt. Gap insurance covers the difference between your ACV and the amount you still owe on your car so you don’t have to keep paying off a vehicle you no longer drive.

Who should buy gap insurance in Georgia?

You do not need gap insurance if you own your vehicle. However, if you are financing your vehicle, there is a high chance that you will end up with negative equity—owing a higher amount on your car than what it is actually worth—and will have to continue paying off your car after a theft or an accident that results in total loss.

Additionally, you should consider purchasing a gap insurance policy if any of the following apply to you.

• You have a long loan term or lease agreement. If it is going to take you 60 months or longer to pay off your vehicle, there is a higher probability that you will end up with negative equity. Consider adding on gap insurance to protect yourself against high out-of-pocket costs in case of a total loss accident or theft.

• You already have negative equity from your previous car loan. If you are already upside down on your car, you can still get a gap insurance policy and protect yourself from accident costs.

• You regularly cover long distances. The more miles you drive, the faster your vehicle’s actual cash value depreciates. If you are financing a car and know that you are going to use it to regularly cover a lot of mileage, consider purchasing gap insurance.

• You are financing a sports car. Luxury vehicles, such as sports cars, depreciate much faster than other cars, so it’s important to invest in a gap insurance policy.

As a general rule, you should always purchase gap insurance if you are financing your vehicle. However, if you make a large down payment of over 20 percent, you may not need to invest in a gap insurance policy because your likelihood of having negative equity is lower.

Georgia Gap Insurance Laws

Georgia laws do not require drivers to purchase gap insurance. As a Georgia driver, you only need to carry the minimum required liability coverage ($25,000 per person and $50,000 per accident in bodily injury liability and $25,000 in property damage liability) and uninsured motorist coverage.

If you are financing your vehicle, your lending institution may require you to get gap insurance or a full-coverage policy—such as comprehensive coverage and collision insurance—with gap insurance as an add-on. In under five minutes, Insurify can help you find a cheap full-coverage policy with gap insurance from the best auto insurance company in Georgia for you.

How much gap insurance do I need in Georgia?

How much gap insurance you need depends on how fast your new vehicle is predicted to depreciate, how much you owe on it, and your personal preferences and budget. On average, new cars lose 20 to 30 percent in value within the first year.

To calculate how much gap insurance you need to feel safe on the road, estimate your projected negative equity: the difference between the amount you owe on your vehicle and its projected actual cash value. Or compare car insurance quotes using Insurify, and receive personalized coverage suggestions.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Georgia

You can either purchase gap insurance as an add-on to your comprehensive and collision coverage or as a stand-alone policy from another auto insurance company, a car dealership, or a bank.

When shopping for gap insurance, it’s important to understand that it only covers your vehicle’s negative equity—the difference between the amount owed and your car’s ACV—in the event of a total loss accident or theft. If your car was not totaled, you need to use your comprehensive or collision coverage. Gap insurance also doesn’t offer payouts for medical bills or lost wages.

Some auto insurance providers in Georgia do not offer gap insurance for used vehicles. If you drive a used vehicle and want to purchase gap insurance, use Insurify to find the best auto insurance companies that offer gap insurance for used cars in Georgia in just a few clicks, instead of spending hours researching them on your own.

See More: Average Cost of Car Insurance in Georgia

How Much Gap Insurance Costs in Georgia

On average, you can expect to pay $389 per month for car insurance if you drive a leased vehicle. If you purchase gap insurance as an add-on to your full-coverage policy, it can add as little as just $20 to your annual premiums. You can only get gap insurance as an add-on if you already have comprehensive and collision coverage.

If you are purchasing gap insurance coverage as a stand-alone policy, you can expect much higher costs. If you are getting your gap insurance policy from a car dealership or a bank, you can expect a one-time fee as high as $500–$700+, and if you are purchasing gap insurance from a car insurance company, the one-time fee can be over $200–$300.

How to Buy Gap Insurance in Georgia

The cheapest and easiest way to get gap insurance in Georgia is as an add-on to your existing comprehensive and collision insurance. If you don’t have an existing full-coverage policy, you can either pay a high one-time fee to get gap insurance as a stand-alone policy or purchase a full-coverage policy together with gap insurance.

To find the best car insurance deal, it is important to get at least four quotes from different car insurance companies because car insurance rates can vary significantly. No two drivers are the same, and no two insurance companies use the same algorithm to weigh factors like your age, your driving experience, and your credit score to determine your auto insurance rate.

Instead of spending hours of your time researching car insurance companies in Georgia and manually requesting quotes from them, spend five minutes on Insurify’s trusted site answering a few basic questions only once, and instantly get 10+ real-time car insurance quotes. Compare them side by side and find the policy with the most coverage at the lowest rate.

Frequently Asked Questions: Gap Insurance in Georgia