--- description: Gap insurance is an optional form of auto insurance in Florida, although in most cases, it may be required if you take out an auto loan. title: How Does Gap Insurance Work in Florida? - Fran Haasch Law --- How Does Gap Insurance Work in Florida? - Fran Haasch Law [Home](https://www.lawfran.com/) » [Car Accident Lawyers](https://www.lawfran.com/car-accident-lawyers/) » How Does Gap Insurance Work in Florida? # How Does Gap Insurance Work in Florida? 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Frequency may vary. Message & data rates may apply. Text HELP for assistance, reply STOP to opt out. Δ If you are a Florida driver, it is important to understand guaranteed asset protection (GAP) insurance. Gap insurance is an optional form of auto insurance in Florida, although in most cases, it may be required by your lender if you take out an auto loan. ## How GAP Insurance Works: The Basics Gap insurance covers the difference between the value of your car and the amount you still owe on your loan. If your vehicle is totaled in an accident, gap insurance will pay the difference between what your insurance company pays and what you still owe on your loan. For example, you buy a car for $20,000 and get in a wreck where your car is totaled. If you still owe $15,000 and have collision coverage, it would pay your lender up to the totaled car’s depreciated value. If the car had an actual cash value, after depreciation, of $13,000 at the time of the crash, you would have to pay $2,000 in cash to clear your loan. With gap insurance coverage, your insurer would help pay that $2,000. ### **Do I Need Gap Insurance?** Gap insurance is not [required in Florida](https://www.lawfran.com/car-accident-lawyers/florida-auto-insurance-requirements/), but some leasing companies may require you to purchase it. Additionally, some dealerships may automatically add gap insurance to your loan; however, you can decline this coverage. ### **How Much Does Gap Insurance Cost in Florida?** The cost of gap insurance varies depending on the value of your car, the length of your loan, and whether you get it through the dealership or an auto insurance provider. ### **How Do I Get Gap Insurance?** You can purchase gap insurance from most auto insurance companies. If you are financing your car, your lender may offer gap insurance. It is important to remember that to qualify for gap insurance; your auto insurer may require you to carry comprehensive or collision coverage on your policy. ### **When Should I Buy Gap Insurance?** It is recommended that you purchase gap insurance when you buy your car or take out a loan. This way, you will be covered from the start in case of an accident. ### **Is Gap Insurance Worth Buying?** When there’s a substantial difference between your car’s actual cash value and what you owe on it, gap insurance is valuable protection. You should consider purchasing gap insurance if: You made a lower down payment on a new car: If you put down less than 20% on your car, you could end up with negative equity on the vehicle as soon as you leave the lot You have a longer finance term: The longer your vehicle is financed, the better the chance of owing more on the car than it’s worth. You’re leasing your car: Most lenders require gap coverage on leased vehicles. - You have a loan [rollover](https://www.lawfran.com/car-accident-lawyers/rollover-accident/): If you owe more on the loan than your car is worth at renewal, gap insurance can help protect you against the negative equity. ### **Does Gap Insurance Cover My Comprehensive/Collision Deductible?** Generally, gap insurance will not reimburse you for your collision or comprehensive deductible in most situations. However, it is important to check your policy to be sure. ### **What Happens if I Don’t Have Gap Insurance?** If you don’t have gap insurance and your car is totaled in an accident, you may be responsible for your remaining loan balance. This could leave you thousands of dollars in debt and without a car. ### **How Long Does Gap Insurance Last?** Gap insurance applies for the duration of your policy. However, you likely won’t need it for the entire length of your loan. You can drop the insurance once you owe less than what the car is worth. ### **Does Gap Insurance in Florida Follow the Car or the Driver?** Gap insurance in Florida [follows the car, not the driver](https://www.lawfran.com/car-accident-lawyers/does-car-insurance-cover-the-car-or-the-driver-in-florida/). This means that if you sell your vehicle, your gap insurance policy will no longer be valid. ### **Transferring Your Gap Insurance** You can transfer your gap insurance policy to the new buyer if you still owe money on your car loan when you sell it. However, the new buyer must meet all of the requirements for gap insurance. These requirements typically include having a loan on the car and carrying comprehensive and collision coverage. Be sure to check with your insurance company to see if they offer this option. If you don’t plan to transfer your gap insurance policy but no longer wish to have coverage, you can cancel your policy anytime by contacting your auto insurance company or dealership. ### **Gap Coverage vs. Other Coverages** Other types of coverage you should consider in addition to gap insurance include: ### **Florida Auto Insurance Requirements** [Florida requires all drivers to carry:](https://www.lawfran.com/car-accident-lawyers/minimum-car-insurance-in-florida/) - ****[**Personal Injury Protection Insurance**](https://www.lawfran.com/car-accident-lawyers/what-is-personal-injury-protection-insurance/)** (PIP):** Drivers must carry at least $10,000 of [PIP coverage](https://www.lawfran.com/blog/2022/05/florida-pip-insurance-limits-making-a-claim-to-only-14-days/). It covers 80% of your medical bills and 60% of lost wages if you are hurt in an accident. It will also cover up to $5,000 in death benefits regardless of who was at fault for the crash. - ****[**Property Damage Liability**](https://www.lawfran.com/car-accident-lawyers/property-damage-liability-insurance/)** (PDL): **Drivers must also carry at least $10,000 in PDL coverage. This coverage protects you from out-of-pocket costs if you damage someone else’s property in an accident. It may include damage to another vehicle, fence, tree, mailbox, road sign, or building. ### **Bodily Injury Liability Insurance** In Florida, drivers aren’t required to carry [bodily injury liability](https://www.lawfran.com/car-accident-lawyers/bodily-injury-liability-coverage/) (BIL) insurance. However, it protects you if you have a car accident in which people are injured or killed due to your negligence. Despite the state’s no-fault system, you could still be sued for injuries your PIP insurance fails to cover. ### **Uninsured/Underinsured Motorist Coverage** [Uninsured motorist protection](https://www.lawfran.com/car-accident-lawyers/underinsured-uninsured-motorists/) is another type of auto insurance that is [important to consider](https://www.lawfran.com/car-accident-lawyers/do-you-need-uninsured-motorist-coverage/) if you are a Florida driver. Because the state doesn’t require drivers to carry BIL, this is the best option for protecting yourself in an accident. With this coverage, you are paid for injuries caused by an auto accident where the at-fault driver is uninsured (has no insurance) or underinsured (not enough insurance). While this coverage does not pay for your car, it may cover medical bills, lost wages, and estimated costs of future medical care. long-term nursing care. ### **Comprehensive and Collision Coverage** Insurance providers usually require drivers to carry collision and comprehensive coverage on their existing auto insurance policy before buying gap insurance. These policies provide more coverage for you and your vehicle but are not required in Florida. [Collision insurance](https://www.lawfran.com/car-accident-lawyers/collision-insurance/) is based on the age and value of your car. If a collision with another vehicle or object led to your accident, it covers damage to your automobile. Even if you were at fault for the accident, you could make a collision claim on your own policy. [Comprehensive car insurance](https://www.lawfran.com/car-accident-lawyers/what-is-comprehensive-insurance/) helps cover damages to your vehicle that a collision did not cause, whether or not a crash occurred. Coverage includes vandalism, auto theft, windshield repairs, fire, animals, and “acts of nature” in Florida, such as hail storms, lightning, floods, and hurricane damage. When you file a claim on collision or comprehensive coverage it is reduced by your deductible amount. Common deductibles are $250, $500, $1,000 and higher. If you get into an accident and your vehicle suffers $2,000 worth of damage and your deductible is $250, the insurance company would pay $1,750 of the claim. ### **New Car Replacement Coverage** New car replacement coverage helps you purchase a brand new vehicle of the same make and model or, in some cases, pay more than the value of the original vehicle if a newer model is available. Most gap insurance companies offer both gap insurance and new car replacement coverage. However, some companies only allow you to purchase one or the other. ### **Contact a Car Accident Attorney Today** After being in a car accident, one of the first things you should do is call a [car accident lawyer](https://www.lawfran.com/car-accident-lawyers/). With their guidance, you will better understand your rights and remedies. The Fran Haasch Law Group and our [personal injury attorneys](https://www.lawfran.com/) are standing by to help car accident victims in Clearwater, Florida, and the Greater Tampa Bay region. We offer free case evaluations to inquiring clients. Our[ case results](https://www.lawfran.com/case-results/) speak for themselves, but if you would like to know more about our legal services, please feel free to call **(727) 784-8191 **or[ contact us online](https://www.lawfran.com/contact-us/) to get started on receiving maximum compensation for your personal injury case. INJURED IN FLORIDA? The Fran Haasch Law Group Is Here for You. Whether you’ve been hurt in a [motorcycle crash](https://www.lawfran.com/motorcycle-accident-lawyers/), [car accident](https://www.lawfran.com/car-accident-lawyers/), [truck collision](https://www.lawfran.com/truck-accident-lawyers/), or another serious incident, you deserve strong legal representation. Our experienced Florida [personal injury attorneys](https://www.lawfran.com/palm-harbor-personal-injury-lawyers/) will fight to protect your rights and help you recover the compensation you need. Schedule Your Free Consultation Share this page Find an Office Near You Our Car Accident Locations At Fran Haasch Law Group Accident & Injury Lawyers, we’re proud to serve clients throughout the greater Tampa Bay area and beyond. With multiple offices across the region, our team is dedicated to making it easy for you to access experienced legal help close to home. Select a location below to learn more about the services available near you. Meet Our Attorneys ## Francoise M. Haasch Founding Attorney Over 20 Years Experience Personal Injury Car Accidents Motorcycle Accidents Lifetime Member Known for extensive trial experience and consistent client advocacy across complex injury cases. Meet Francoise M. Haasch ## Joshua R. Lipton Managing Attorney Over 20 Years Experience Personal Injury Car Accidents Motorcycle Accidents Recognized for consistent results and strong client advocacy in complex accident cases. Meet Joshua R. Lipton ## David R. Fuller Attorney Over 30 Years Experience Personal Injury Litigation Secured more than a dozen seven-figure settlements for clients. Meet David R. Fuller ## Allen J. Pipkins II Attorney Over 10 Years Experiece Personal Injury Wrongful Death Motorcycle Accidents Combines experience from both plaintiff-side injury firms and large insurance companies. Meet Allen J. 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May 8, 2022 An auto accident can cause you to suffer serious injuries that might require medical treatment, including surgery, rehabilitation, and prescription medication. In some cases, the Read Full Post » What About My Rental Car? May 8, 2022 Was your vehicle severely damaged in an auto accident? Are you wondering who is going to pay for your rental car? If you require a Read Full Post » What Happens When Medicine Causes a Car Accident? May 8, 2022 According to the Governors Highway Safety Association, 43.6 percent of fatally injured drivers in 2016 tested positive for drugs, and over half of those drivers Read Full Post » ## Contact Us Today (727) 784-8191 Our experienced attorneys are here to help you navigate your legal rights with confidence. 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