Does State Farm offer GAP insurance?
GAP insurance protects you from paying on an upside-down loan for a car that’s been stolen or totaled. While there is no State Farm GAP insurance, the company does offer a Payoff Protector benefit which does the same thing. However, the Payoff Protector is only available to auto loan borrowers with State Farm. Progressive and Allstate GAP insurance are excellent alternatives if you're looking for affordable coverage.
Read moreFree Auto Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
UPDATED: Dec 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Dec 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- GAP insurance protects you from paying on an underwater loan if your car is totaled or stolen while you owe more than its worth
- While State Farm does not offer GAP insurance, it does have a Payoff Protector benefit for customers who have a State Farm auto loan
- Alternatives to State Farm for GAP insurance include Progressive, Nationwide, and Allstate
Buying a new car is an accomplishment, especially if you’re buying your dream car. Few things in life feel the same as when the dealer puts the keys in your hand and you get to drive your car for the first time.
Then, imagine how you would feel if someone runs a red light and smashes into your new car, totaling it. It’s a heartbreaking situation, but drivers find themselves in this situation all the time. Your car’s value depreciates as soon as you drive it off the lot, but the amount of your loan stays the same.
What do you do if your vehicle is totaled and its value is less than what you owe? Especially if your auto insurance doesn’t cover everything?
Guaranteed Asset Protection – or GAP – insurance covers the difference between your car’s worth and how much you owe on your loan. So, who offers GAP insurance? Most major insurance providers sell either GAP coverage or something similar, including State Farm.
If you want to buy State Farm GAP insurance, you should still see what other companies offer you. Enter your ZIP code into our free tool today when you’re ready to see what quotes might look like for you.
Does State Farm sell GAP insurance?
Potential customers often want to know what GAP coverage they can buy and how much State Farm Gap insurance costs.
State Farm is one of the big insurance companies that doesn’t have a specific GAP coverage option. Instead, State Farm customers have access to the Payoff Protector benefit.
Every car that State Farm finances automatically gets Payoff Protector. Despite a different name, the Payoff Protector works similarly to GAP insurance.
If your new car is stolen or totaled, your collision or comprehensive coverage still applies, even if it comes from a different company.
After your car insurance pays for its portion, Payoff Protector pays the rest of what you owe to State Farm for your car loan. Of course, your loan needs to be in good standing for Payoff Protector to cover you if something happens to your car.
Unfortunately, not everyone can buy Payoff Protector. Only people who have auto loans through State Farm are eligible for this benefit.
How does GAP insurance work?
Practically everyone’s heard that your car loses a quarter of its value the second you drive it off the lot. While depreciation isn’t that extreme, you do lose some of the value on your first day of ownership.
Since you initially lose value, your loan automatically becomes upside down or underwater, meaning you owe more on it than the car is worth.
If your car is stolen or declared a total loss while your loan is underwater, GAP insurance prevents you from paying on a car you no longer have.
Your car can be declared a total loss easier than you might think. Though it depends on your car insurance company, most providers will declare a total loss once the repair costs reach a specific percentage of the car’s value.
For most companies, that percentage is anywhere between 75 and 90%. Some repairs can be very costly, especially on new vehicles. It’s not too difficult for a car to be declared a total loss.
Compare Insurance Providers Rates to Save Up to 75%
Secured with SHA-256 Encryption
Other Companies That Sell GAP Insurance
If you want GAP insurance, but your heart was set on State Farm, you’re probably disappointed that there is no option to buy it.
The good news is that plenty of other quality companies offer GAP insurance. While it might not come from State Farm, the following companies can provide you GAP. (For more information, read our “Understanding Gap Insurance: What is it and how does it work?“).
Allstate GAP Insurance
Allstate is one of State Farm’s top rivals and it offers a GAP insurance plan that anyone can buy.
If your car is declared a total loss, Allstate will cover up to $50,000 to pay off the remaining balance on your loan or lease. A bonus is that your GAP coverage applies to your car insurance deductible.
While prices vary, you could pay as little as $20 for a 6-month policy.
Read more: Does Allstate offer GAP insurance?
Progressive GAP Insurance
Another company that offers a traditional GAP policy, Progressive’s plan covers 25% of the total cash value of your vehicle. That means that if the actual cash value of your car is $10,000, Progressive will cover $2,500.
You can’t buy GAP insurance without an existing Progressive policy, but prices are extremely affordable. Typically, GAP starts at $5 a month.
Nationwide GAP Insurance
While you can buy GAP insurance from Nationwide, it is one of the only companies where you have to pay a deductible if you file a claim.
Before buying a GAP policy from Nationwide, you should make sure the deductible is affordable.
Other Companies That Sell GAP insurance
Travelers, American Family, and Safeco sell traditional GAP policies. Other companies like USAA have programs similar to State Farm’s (USAA’s is called Total Loss Protection, and only military members are eligible for it).
Other insurance providers don’t offer any form of GAP insurance. For example, there is no such thing as Geico GAP insurance.
Is GAP insurance worth it?
Whether or not GAP insurance is worth purchasing for you depends on your situation. GAP might be worth considering if any of the following apply to you.
- Lessees. There’s a good chance that your car lease already has some form of GAP insurance built into it. Payments on leases are typically smaller than loans which means there can be a difference in the value of the car and the amount owed on your lease for much longer.
- You made a small down payment on your car. When you put a small amount of money down for a car loan, you owe more on it. GAP protects you from going upside down on your loan.
- You have a car that depreciates quickly. The faster your car depreciates value, the less actual cash value it has. Sports, luxury, and other high-end vehicles depreciate the fastest.
- You chose an extended loan period. Since cars typically lose up to 20% of their value in the first year, it might be a good idea to get GAP insurance if you choose an extended loan.
However, if you have a short loan, you put a large down payment on your car, or you don’t drive very much, it might be best for you to skip GAP.
Find GAP Insurance Today
While an affordable State Farm GAP insurance option doesn’t exist unless your auto loan is with them, there are plenty of other options. You can find GAP insurance from reputable insurance providers as highly rated as State Farm.
Before you give up on State Farm GAP insurance quotes, you should look at what their rivals can offer you. Enter your ZIP code into our free tool if you’re ready to see what rates could look like for you.
Compare Insurance Providers Rates to Save Up to 75%
Secured with SHA-256 Encryption
Case Studies: State Farm’s Offering of GAP Insurance
Case Study 1: Sarah’s Vehicle Replacement
Sarah, a State Farm policyholder, bought a $40,000 new car. Sadly, the vehicle was totaled in a major accident a few months later. Fortunately, Sarah had GAP insurance with State Farm, which covered her remaining auto loan balance and gave her extra money to buy a new car. This prevented her from facing significant financial setbacks while replacing her vehicle.
Case Study 2: John’s Negative Equity Protection
John financed a used car with a loan and chose State Farm’s GAP insurance. Economic downturn caused the car’s value to drop. When John sold the car, it was worth less than his loan balance. State Farm’s GAP insurance covered the difference, saving John from negative equity.
Case Study 3: Melissa’s Lease Protection
Melissa leased a luxury SUV with GAP insurance from State Farm. When the vehicle was stolen and never recovered, State Farm’s GAP insurance covered the difference between the stolen car’s value and the remaining lease balance. This relieved Melissa’s financial worries and allowed her to continue without the burden of additional lease payments.
Understanding Extreme Gap Insurance: A Comprehensive Guide
Extreme Gap insurance protects car owners from significant financial burdens if their vehicle depreciates faster than their loan balance reduces. State Farm Gap coverage, through the Payoff Protector from State Farm, covers the remaining loan balance for vehicles financed through State Farm, offering vital protection in the event of a total loss or theft.
Extreme Gap Insurance
Extreme Gap insurance is a type of coverage designed to protect you in situations where your vehicle’s depreciation significantly exceeds the outstanding balance on your loan or lease. This type of insurance ensures you aren’t left with a large debt if your car is totaled or stolen.
Compare Insurance Providers Rates to Save Up to 75%
Secured with SHA-256 Encryption
Extreme Gap Insurance Differ from Regular Gap Insurance
While standard gap insurance covers the difference between your car’s value and your loan balance, extreme Gap insurance provides additional protection, often including higher coverage limits and more comprehensive terms.
Consider Extreme Gap Insurance
- High-Value Vehicles: If you own a high-value vehicle, it may depreciate faster than the loan balance reduces.
- Long Loan Terms: Loans with extended repayment periods can increase the risk of negative equity.
- Minimal Down Payment: Purchasing a vehicle with a small down payment can leave you with a larger loan balance compared to the car’s value.
Purchase Extreme Gap Insurance
- Research Providers: Look for insurance companies that offer extreme Gap insurance, comparing their coverage options and rates.
- Evaluate Coverage Needs: Determine the amount of coverage you need based on your vehicle’s value and loan balance.
- Get Quotes: Request quotes from multiple providers to find the best rate and coverage.
- Read the Fine Print: Ensure you understand the terms and conditions of the policy, including any exclusions or limitations.
State Farm’s Solutions for Gap Insurance Needs
State Farm offers a comprehensive range of solutions for your gap insurance needs, including options that integrate seamlessly with their auto loan services. In addition to the State Farm Payoff Protector, which covers the remaining loan balance if your vehicle is totaled or stolen, they also provide flexible options like short-term car insurance from State Farm.
This can be particularly beneficial if you need temporary coverage during a transition period. Coupled with State Farm auto insurance, which offers extensive protection and customizable policies, these solutions ensure that you are fully covered in any situation. By financing your vehicle through State Farm, you can enjoy the peace of mind that comes with knowing both your loan and insurance needs are comprehensively addressed.
Gap Insurance from State Farm
State Farm offers a form of gap coverage known as the State Farm Payoff Protector, which functions similarly to traditional gap insurance but is specifically available to customers with auto loans through State Farm.
State Farm Payoff Protector
The State Farm Payoff Protector automatically applies to all vehicles financed through State Farm auto financing. If your car is totaled or stolen, this benefit covers the remaining loan balance after your primary insurance payout, ensuring you aren’t left with out-of-pocket expenses.
Add Gap Insurance with State Farm
While you can’t add traditional Gap insurance through State Farm, the Payoff Protector serves as an equivalent, providing the same level of protection.
State Farm Auto Insurance Gap Coverage
State Farm auto Gap insurance is seamlessly integrated with their auto loan financing. This ensures that you receive comprehensive coverage without needing to purchase a separate gap insurance policy.
Comparing State Farm Gap Insurance Cost
When considering Gap insurance coverage with State Farm, it’s important to evaluate the cost of their Payoff Protector compared to other providers. While State Farm’s solution is typically included with their auto loans, it’s still beneficial to compare it against dedicated gap insurance policies from other companies.
Compare Insurance Providers Rates to Save Up to 75%
Secured with SHA-256 Encryption
Motorcycle Gap Insurance Comparison
While State Farm primarily offers gap coverage for cars through their Payoff Protector, those with motorcycles might need to look elsewhere. Progressive Insurance, for example, provides a loan lease payoff option for motorcycles, which functions similarly to gap insurance.
Progressive’s Loan/Lease Payoff Coverage
Progressive’s loan/lease payoff coverage is an alternative to State Farm’s Payoff Protector. This coverage is available for both cars and motorcycles, offering similar protection by covering the remaining loan balance if your vehicle is totaled or stolen.
Steps to Purchase Gap Insurance from State Farm
- Finance Your Vehicle with State Farm: Ensure your auto loan is through State Farm to automatically receive the Payoff Protector benefit.
- Confirm Coverage: Verify with your State Farm agent that your loan qualifies for the Payoff Protector.
- Review Terms: Understand the specifics of the Payoff Protector, including any conditions or limitations.
Compare Insurance Providers Rates to Save Up to 75%
Secured with SHA-256 Encryption
State Farm Auto Finance and Insurance Options
State Farm Auto Financing
State Farm auto financing offers competitive loan rates and flexible terms. Financing your vehicle through State Farm not only provides you with a loan but also includes the Payoff Protector benefit, enhancing your financial protection.
State Farm Auto Insurance Quote
Obtaining a State Farm auto insurance quote is straightforward. By entering your ZIP code and personal details, you can receive a customized quote that includes potential savings and discounts.
State Farm Auto Loan Payment
Making your State Farm auto loan payment is convenient and can be done through various methods, including online, by phone, or via mail. This ensures you maintain your loan in good standing and continue to benefit from the Payoff Protector coverage.
When considering gap insurance, it’s important to explore all your options, including those offered by State Farm and other providers like Progressive. Whether you’re looking for standard gap insurance, extreme Gap insurance, or specific options like motorcycle coverage, understanding the details and comparing different policies will help you make an informed decision.
Understanding State Farm Auto Loan Options and Related Coverage
When exploring financing and insurance options, it’s important to understand the full range of offerings from providers like State Farm. This section will delve into State Farm’s various auto loan options, insurance plans, and related products, and help you make informed decisions about your financial protection and vehicle financing needs.
State Farm Auto Loan Overview
State Farm provides a variety of auto loan options to suit different needs, including financing for cars, motorcycles, and boats. Understanding the specifics of these loans can help you choose the best option for your situation.
State Farm Auto Loan Rates and Requirements
- State Farm Auto Loan Rates: State Farm offers competitive rates on auto loans, which vary based on the type of vehicle, loan term, and creditworthiness. Rates for used car loans and motorcycle loans might differ from those for new cars or boats.
- State Farm Auto Loan Requirements: To qualify for a State Farm auto loan, you typically need a good credit score, a stable income, and a sufficient down payment. Specific requirements can vary based on the type of loan and your financial profile.
State Farm Auto Loan Review
State Farm’s auto loans are well-regarded for their competitive rates and flexible terms. Customers appreciate the ease of managing their auto loans through State Farm’s online platform, and the integration with their insurance plans provides a seamless experience.
Compare Insurance Providers Rates to Save Up to 75%
Secured with SHA-256 Encryption
State Farm Auto Loan Payoff and Payment Options
When managing your State Farm car and auto finance, it’s important to understand your options for loan payoff and payment. You can request a State Farm quote to get an estimate of the remaining balance on your State Farm used car loan if you’re considering paying it off early. This helps you plan your finances effectively and avoid any surprises.
State Farm Auto Loan Payoff
- State Farm Auto Loan Payoff: If you need to pay off your State Farm auto loan early, you can do so without prepayment penalties. Contact State Farm for a payoff quote to understand the total amount needed to settle your loan.
State Farm Car Loan Payment
- State Farm Car Loan Payment: Payments can be managed through various methods, including online, by phone, or via mail. Setting up automatic payments can help you stay on track and avoid missed payments.
Specialized Financing Options
State Farm also offers specialized loans for vehicles beyond standard cars.
State Farm Boat Loans
- State Farm Boat Loans: State Farm provides financing options for purchasing boats, with rates and terms tailored to marine vehicles.
State Farm Motorcycle Loans
- State Farm Motorcycle Loan Rates: Financing for motorcycles is available with competitive rates. The rates may vary depending on the motorcycle’s age and the borrower’s credit profile.
- State Farm Motorcycle Loan: For those looking to purchase a motorcycle, State Farm offers loans that cover new and used motorcycles.
State Farm Used Auto Loan and Motorcycle Loan
- State Farm Used Auto Loan: If you’re buying a used car, State Farm offers loans with flexible terms and competitive rates.
- State Farm Used Motorcycle Loan: Similarly, financing is available for used motorcycles, with terms designed to accommodate the specifics of pre-owned vehicles.
State Farm Gap Insurance Price Per Month
When considering additional protection for your vehicle, it’s important to understand the State Farm Gap Insurance price per month. Gap insurance covers the difference between what you owe on your car loan and the car’s actual cash value in the event of a total loss. State Farm offers competitive rates, making it an affordable option for many drivers. By evaluating the State Farm Gap Insurance price per month, you can ensure that you’re adequately protected without stretching your budget.
Compare Insurance Providers Rates to Save Up to 75%
Secured with SHA-256 Encryption
Insurance Coverage from State Farm
In addition to auto loans, State Farm provides comprehensive insurance coverage options.
State Farm Car Insurance Plans
- State Farm Car Insurance Plans: State Farm offers a range of car insurance plans, including liability, collision, and comprehensive coverage. Customizing your plan can help you meet your specific needs.
Temporary Car Insurance from State Farm
- Temporary Car Insurance from State Farm: For short-term coverage needs, State Farm provides temporary car insurance options. This can be ideal for those who need coverage for a limited period or for rental vehicles.
State Farm Gap Insurance Coverage
GAP insurance helps cover the difference between your vehicle’s value and the remaining loan balance if your car is totaled.
State Farm Gap Insurance Coverage and Price
- State Farm Gap Insurance Coverage: The Payoff Protector benefit from State Farm functions similarly to traditional GAP insurance, covering the remaining loan balance if your vehicle is a total loss.
- State Farm Gap Insurance Price: While specific pricing for GAP insurance isn’t listed separately, the Payoff Protector is included with auto loans from State Farm.
Finding the Best GAP Insurance
When considering GAP insurance, it’s useful to compare options from various providers.
Top Gap Insurance Providers
- Top Gap Insurance Providers: For those seeking alternatives to State Farm’s Payoff Protector, companies like Allstate, Progressive, and Nationwide offer Gap insurance coverage with competitive rates and terms.
Understanding these aspects of State Farm’s auto loans and insurance options can help you make well-informed decisions about financing and protecting your vehicle. For a personalized quote or further details, enter your ZIP code to explore what State Farm can offer you.
Compare Insurance Providers Rates to Save Up to 75%
Secured with SHA-256 Encryption
Frequently Asked Questions
Does State Farm offer Gap insurance?
State Farm does not offer traditional GAP insurance. Instead, they provide a similar benefit called Payoff Protector for customers who finance their vehicles through State Farm.
Why doesn’t State Farm offer Gap insurance?
State Farm does not offer traditional GAP insurance as a separate product. However, they provide a similar benefit called Payoff Protector for their auto loan customers.
Can you get Gap insurance through State Farm?
No, State Farm does not offer traditional GAP insurance. They provide the Payoff Protector benefit, which serves a similar purpose for those who have auto loans with them.
How do I know if I have Gap insurance with State Farm?
State Farm does not offer traditional GAP insurance. If you have an auto loan through State Farm, you may have the Payoff Protector benefit instead. Check with your State Farm agent to confirm your coverage.
How much is Gap insurance per month with State Farm?
State Farm does not offer traditional GAP insurance, so there is no monthly cost for it. Instead, they offer the Payoff Protector benefit, which is included with State Farm auto loans.
How much does State Farm Gap insurance cost?
State Farm does not provide traditional GAP insurance, so there is no cost associated with it. Their alternative, Payoff Protector, is included with State Farm auto loans.
Can I buy Gap insurance from State Farm?
No, State Farm does not sell traditional GAP insurance. They offer a similar benefit called Payoff Protector for auto loans.
Can I purchase Gap insurance separately?
Yes, you can purchase GAP insurance separately from other insurance providers like Allstate, Progressive, and Nationwide. State Farm does not offer this option.
Do I have Gap insurance with State Farm?
State Farm does not offer traditional GAP insurance. If you have an auto loan through State Farm, you may have the Payoff Protector benefit instead. Verify your coverage with your State Farm agent.
Does State Farm cover Gap insurance?
State Farm does not cover traditional GAP insurance. They provide a similar benefit called Payoff Protector for auto loan customers.
Does State Farm offer auto loans?
Yes, State Farm offers auto loans. Customers who finance their vehicles through State Farm may receive the Payoff Protector benefit.
Does State Farm offer Gap coverage?
State Farm does not offer traditional GAP insurance. They provide a similar benefit called Payoff Protector for those with auto loans through State Farm.
Does State Farm sell health insurance?
Yes, State Farm does sell health insurance in addition to its auto insurance and other financial products.
How do I pay my State Farm auto loan online?
You can pay your State Farm auto loan online by logging into your State Farm account on their website or mobile app. There, you will find options to make a payment.
How does Progressive loan lease payoff work?
Progressive’s loan lease payoff coverage is similar to GAP insurance. It covers the remaining balance on your loan or lease if your vehicle is totaled or stolen, up to a specified amount.
How much is Gap insurance with State Farm?
State Farm does not offer traditional GAP insurance, so there is no cost for it. They provide the Payoff Protector benefit as an alternative for their auto loan customers.
How to add Gap insurance with State Farm?
State Farm does not offer traditional GAP insurance, so you cannot add it through them. Instead, they offer the Payoff Protector benefit with auto loans.
Compare Insurance Providers Rates to Save Up to 75%
Secured with SHA-256 Encryption
Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.