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Best Cheap Gap Insurance Companies in Kentucky: Quotes, Discounts (2023)
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Written by
Doug Shaffer
Insurance Writer
Doug Shaffer works as a content writer. He has had the opportunity to write for several national insurance carriers in the past and brings with him over six years of experience working with both business and consumer products. He enjoys being able to break down complex insurance jargon to allow consumers to fully understand their policies.
Edited by
Tanveen Vohra
Editorial Manager
Tanveen Vohra is an editorial manager at Insurify specializing in writing about property and casualty insurance. Through her work, Tanveen helps consumers better understand the components of their insurance policies so they can make smarter purchase decisions.Tanveen's work has been cited by CNBC , Fox Business, Business Insider, Fortune, and Market Watch, among others.
Reviewed by
Amber Benka
Licensed Insurance Agent
Amber Benka is a licensed insurance agent specializing in auto, home, commercial, life, and health insurance.
Updated June 15, 2022
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Gap Insurance in Kentucky
Using an auto loan or participating in a leasing program is a great way to finance a new car in Kentucky. However, it’s important to have the proper coverage in place to financially protect yourself should your vehicle be deemed a total loss after an accident or a theft. Gap insurance is one of the best options to help cover you in these particular situations. The Insurify platform can assist you in finding the perfect gap insurance policy to meet your needs within minutes.
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Table of contents
- Gap Insurance in Kentucky
- Best Companies for Gap Insurance in Kentucky
- What is gap insurance?
- Who should buy gap insurance in Kentucky?
- Kentucky Gap Insurance Laws
- How much gap insurance do I need in Kentucky?
- How Gap Insurance Works in Kentucky
- How Much Gap Insurance Costs in Kentucky
- How to Buy Gap Insurance in Kentucky
- Frequently Asked Questions: Gap Insurance in Kentucky
Best Companies for Gap Insurance in Kentucky
If you leased a vehicle and are looking for auto insurance or guaranteed asset protection, consider getting a quote from one of the Kentucky insurance companies below.
| Insurance Company | Average Monthly Cost for Leased Cars in Kentucky |
|---|---|
| Travelers | $208 |
| SafeAuto | $214 |
| State Auto | $229 |
| Safeco | $235 |
| Midvale Home & Auto | $252 |
| Liberty Mutual | $331 |
| Bristol West | $373 |
| Dairyland | $381 |
| The General | $398 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
See More: Cheap Car Insurance in Kentucky
What is gap insurance?
Gap insurance is often associated with car loans or leasing programs. The coverage itself financially protects you from having to pay the difference between your car’s actual cash value and the remaining balance on a loan when your vehicle is totaled. Without the gap auto insurance policy, you would have to pay these costs out of pocket.
The coverage is often required by lenders that offer financing options to those purchasing a new vehicle. Unlike other Kentucky car insurance products, like liability insurance or bodily injury insurance, gap coverage is optional and not mandated by the state.
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Who should buy gap insurance in Kentucky?
Anyone with car insurance coverage can purchase gap coverage. However, the drivers who will benefit the most are those who use an auto loan or lease to obtain their next vehicle. If you fall into one of the following categories, you should consider a guaranteed asset protection policy:
Your car loan term agreement is longer than five months.
You paid 20 percent or less as a down payment on your vehicle.
Your car is known to depreciate faster than other automobiles.
You are partaking in a leasing program offered by a dealership.
Kentucky Gap Insurance Laws
In Kentucky, there are no laws that require a driver to carry gap insurance. However, it is common for lenders to ask a policyholder to add the coverage to their auto insurance products before approving them for a loan.
How much gap insurance do I need in Kentucky?
Generally, when it comes to the amount of gap insurance you need, the lending company you are working with will outline it in the loan agreement. Regardless of the amount, it is essential to note that there are typically two different types of gap policies. One type will only pay up to 25 percent, while the other will pay off your loan completely.
Since gap insurance is an add-on product, it often pairs well with other insurance products, such as collision coverage or liability coverage. When reviewing your gap insurance options, the deductible is something to keep in mind, as some policies may have a higher deductible than others.
See More: How Much Car Insurance Do I Need?
How Gap Insurance Works in Kentucky
Regardless of whether you are a safe driver or not, having gap insurance can save you from having to pay thousands of dollars out of pocket. The insurance policy covers the gap between the actual value of your vehicle and the remaining balance on your loan. It can also be added to an existing auto insurance policy to create a comprehensive coverage plan.
Even though gap insurance won’t cover medical bills or medical expenses, it does have the added benefit of a reimbursement component. To qualify for the money back, you will need to pay your policy in advance and pay off your vehicle early.
How Much Gap Insurance Costs in Kentucky
How much is gap insurance in Kentucky?
The average cost to insure a leased vehicle in Kentucky is $325 per month. However, what you pay for gap insurance will largely depend on whether you buy gap insurance from your car dealership or from your insurance provider.
Many factors play a role in the rates you might receive for gap insurance in Kentucky, including age, driving history, and policy limits. Location can also affect your monthly payments. For example, a motorist in Lexington may not pay the same rate as a driver in Louisville. On average, you should expect to pay around $325 for standard coverage with gap insurance.
How to Buy Gap Insurance in Kentucky
For Kentucky drivers, there are several ways to purchase gap insurance. Typically, you can obtain coverage through lenders that offer auto loans, dealerships, or insurance companies. Each option provides a gap insurance product that is slightly different, so you will need to review the details closely.
Often, car insurance companies provide the best rates and are the best option for buying gap coverage. However, deciding which auto insurance provider to purchase through can be a difficult decision. Most motorists only consider large insurance companies such as Allstate, GEICO, and Progressive. Still, several others offer affordable coverage, too.
Generally, the best way to ensure you find coverage at an affordable rate is to use a comparison platform like Insurify. The Insurify platform allows you to quickly compare insurance quotes that you qualify for on a single page. This makes it easier to review policy details and pick the plan that makes the most sense for you.
Frequently Asked Questions: Gap Insurance in Kentucky
Currently, Kentucky doesn’t have a state law that forces drivers to carry gap insurance on their vehicles. On the other hand, drivers could be forced by a lender to carry a gap insurance policy if they take out a loan or lease a car. If you must have gap coverage, you will often need to maintain the insurance as long as the lease or loan is active.
If you purchase gap insurance, you may be able to get money back once you’ve paid off your car. To do so, you have to meet a few requirements. First, you had to have paid your gap insurance policy in advance, and second, you would need to pay your vehicle off early. If you do both, you could receive a refund for the remaining portion of your gap coverage.
Finding a cheap gap insurance policy in Kentucky can be tricky. Several insurance companies offer coverage, but not all provide the same coverage limits or insurance rates. Often, the best way to find affordable gap insurance is by shopping around with a platform like Insurify, where you can compare multiple quotes all on a single screen.
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Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.
