GAP Insurance Cost Estimator
See Your Protection Gap in 2025
Estimate your GAP coverage needs and potential cost based on your car's value, loan balance, and depreciation rate. Perfect for financed or leased vehicles.
Typical rates: Sedan 15%, SUV 18%, Truck 20%, EV 25%
What Is GAP Insurance and Why You Might Need It
Understanding GAP Coverage
Guaranteed Asset Protection (GAP) insurance covers the difference between what your car is worth (actual cash value) and what you owe on your loan or lease if the vehicle is totaled or stolen.
This protection is crucial because cars depreciate faster than loan balances decrease, especially in the first few years of ownership.
The "Gap" Problem
New cars can lose 20-30% of their value in the first year alone. If you have an accident during this time, your insurance payout might not cover your remaining loan balance.
GAP insurance protects you from having to pay off a loan for a car you no longer have.
Average GAP Insurance Costs in 2025
| Country | Typical Cost (per year) | Dealer Add-on | Independent Provider |
|---|---|---|---|
| United States | $200–$400 | $600–$900 | $250 |
| United Kingdom | £150–£300 | £400–£600 | £200 |
| Germany | €180–€320 | €450 | €230 |
Who Benefits Most from GAP Insurance
- New car buyers (first 2-3 years)
- Low down payment loans (<20%)
- Long-term finance plans (60+ months)
- High-depreciation vehicles (luxury, EVs)
When You Don't Need GAP
- Fully paid-off car
- Old vehicles (8+ years)
- High equity in loan (>30% down payment)
- Short loan terms (36 months or less)