[Explainer] Progressive Gap Insurance: Should You Buy?

Progressive Gap Insurance

Progressive gap insurance can be a great help when you face massive headaches regarding financial responsibility in situations like getting totaled or car theft. In such cases, your car could do with some added support in the form of gap insurance. Learn everything about gap insurance and what benefits you can enjoy from Progressive.

Progressive Gap Insurance: Overview [2023]

Progressive gap insurance is better known as loan/lease payoff. The idea is to cover the difference between the car’s loan amount and its market cash value in case of a total loss of the car, like theft or getting totaled. Although Progressive gap insurance costs about $20 yearly, it can be valuable in the long run.

Compare Progressive Gap Insurance Rates By Age [2023]

For any car insurer, the premium rate they offer generally drops as the age of the driver in question increases. So, car insurance rates are usually the highest for teenage drivers, while rates go down significantly for drivers above the age of 25. Age is one of the most important factors that decide insurance costs because drivers are expected to lack experience and take more risks at a younger age.

Progressive Gap Insurance Rates By Age
Progressive Gap Insurance Rates By Age

At Progressive, insurance rates for auto insurance drop noticeably by the time the driver is 25 years of age. A 25-year-old driver will pay approximately 9% less as a premium than their 18-year-old counterparts. This exact principle also applies when you are buying Progressive gap insurance. If you add gap insurance coverage to your existing car insurance, you will pay an additional $20 per year to your current yearly premium. The insurance price will vary depending on your age, driving history, and the nature of coverage.

Read – [Check] Progressive Windshield Replacement Claim Guide 2023

How Does Progressive Gap Insurance Work? [2023]

Gap insurance typically takes care of a scenario where your car faces total loss, like being stolen or totaled. Gap insurance comes into the picture when the loan amount exceeds the car’s market value. An insurer will cover the difference between the loan or lease amount and the value of your vehicle.

Progressive Gap Insurance Work
Progressive Gap Insurance Work

However, Progressive gap insurance works unconventionally. Many tend to call it a loan or lease payoff instead of gap insurance. The only difference between gap insurance and loan or lease payoff is that the latter puts a ceiling on the amount of claim you can file. In the case of a loan or lease payoff, you can only get coverage for 25% of the car’s value.

At the same time, Progressive loan/lease payoff insurance offers better coverage at more reasonable rates than the competing options in this range.

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Progressive Gap Insurance Coverage And Policy Options [2023]

The details about Progressive gap insurance become more apparent when you consider that it is more commonly called loan/lease payoff. Here is everything you need to know about this:

Progressive Gap Insurance Coverage
Progressive Gap Insurance Coverage
  • The comprehensive coverage pays your car’s actual cash value (ACV) whenever your car is totaled or stolen. However, you will have to pay the deductibles. Here, the gap coverage will cover the difference between the CAV and the extra amount in the loan or lease.
  • The insurance might not provide coverage for the other charges associated with the loan.
  • Progressive loan/lease payoff comes at a very affordable price. It costs $20 yearly or $5 every month.
  • It is not responsible for covering your payables from previous insurance liabilities. So Progressive gap insurance will not cover your deductible, extended warranties, or any balance from prior insurance coverage.
  • You do not necessarily need to be the one-off-fault to be able to make a Progressive gap insurance claim. The fault does not play a role in determining the validity of such a claim.

Learn – How Do I Get Car Insurance Before Buying Car In 2023?

What Are The Pros And Cons Of Progressive Gap Insurance? [2023]

Pros of purchasing auto insurance from Progressive:

  • Progressive is a valid and legitimate auto insurer with the third most significant presence in the USA.
  • They have all sorts of added benefits, like pet accident coverage and rideshare coverage.
  • Progressive is also generally on board with providing high-risk.
Progressive Gap Insurance - Pros & Cons
Progressive Gap Insurance – Pros & Cons

Progressive auto insurance coverage options also have some cons:

  • According to J.D. Power, they could do better in terms of customer satisfaction.

However, adding Progressive gap insurance to your auto insurance plan is a worthwhile investment.

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5 Progressive Gap Insurance Discount Types Explained [2023]

Here are 5 progressive Gap insurance discounts types that you should know and avail as early as possible to save money on your auto insurance policy:

  1. Good student discount (requires “B” average or better).
  2. Multi-policy discount.
  3. Multi-car discount
  4. Continuous insurance discount
  5. Adding teen driver discount

Recommended – How To Buy Cheap Auto Insurance: 10 Tips [2023]

Does Homeowners and Motorcycle Insurance Cover By Progressive? [2023]

Yes, other than auto insurance, Progressive has several different insurance options. They provide Homeowner insurance, including insurance coverage for the house owners, other establishments on the same property, one’s belongings, medical payables, et cetera.

Homeowners and Motorcycle Insurance
Homeowners and Motorcycle Insurance

As for motorcycle insurance, Progressive ranks number 1 in the country. Progressive offers some of the most affordable motorbike insurance coverage options in the USA, starting from just $75.

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How To Apply For Progressive Gap Insurance? [2023]

Progressive insurance purchase is as simple as shopping around, choosing the best insurer to go for, and then making the financial transaction to purchase your Progressive gap insurance.

Apply For Progressive Gap Insurance
Apply For Progressive Gap Insurance

If you already have auto insurance from Progressive, you can add gap coverage as an additional layer of security to your car. It will cost you an added $20 yearly to have gap insurance coverage for your vehicle.

Conclusion: Is Buying Progressive Gap Insurance Worth It?

Progressive gap insurance is worth the purchase, especially when you owe more money on the car lease or loan than the actual market value. In a situation where your vehicle requires a relatively small down payment or your loan term is short, getting Progressive gap insurance will help. All car insurance providers don’t offer gap insurance, which makes it a winning factor in favor of Progressive.

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[Explainer] Progressive Gap Insurance: Should You Buy?
[Explainer] Progressive Gap Insurance: Should You Buy?

Sagar Das
Sagar Das

Sagar Das is a freelance content writer at Mount Shine responsible for developing educational content about auto insurance.

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