Does Progressive Sell Gap Insurance?

Last Updated on October 7, 2026

By James Shaffer Reviewed by Thomas Rockford, insurance industry executive and financial analyst, on October 4, 2026 How we fact-check

Yes—Progressive offers a GAP-like option called Loan/Lease Payoff. It can help if your car is stolen or totaled and you owe more than the car is worth.

Be careful with the word “gap” here. Progressive sells no product called gap insurance. Two of its biggest rivals sell even less: GEICO’s page says its “auto insurance offerings do not include gap insurance,” and State Farm’s gap-type benefit is a provision attached to its vehicle loans rather than a coverage on a car insurance policy. Travelers does sell real gap coverage. So payout limits and what the coverage won’t pay are worth reading closely.

Progressive Offers a GAP-Like Add-On: It’s called Loan/Lease Payoff. Progressive sells nothing named gap insurance, and says so: “At Progressive, only loan/lease payoff coverage is offered.”
Expect a Built-In Payout Cap: Progressive pays “up to 25% of your vehicle’s value,” and says the exact limit can vary by state. On a car worth $20,000 that’s about $5,000 of gap protection.
It Requires Physical Damage Coverage: You generally need comprehensive and collision (“full coverage”) for Loan/Lease Payoff to be available.
Check for Existing Coverage First: Gap-type protection sometimes comes attached to the financing instead of the policy. Read your finance or lease agreement before you pay for it twice.

Table Of Contents

How Progressive’s Gap Insurance Works
Does Progressive Offer Gap Insurance to Most Customers?
What Progressive’s Loan/Lease Payoff Covers (And Excludes)
Do You Need Gap Insurance?
Progressive Gap Insurance Requirements
Is Progressive Gap Insurance Worth It?
How Much Does Progressive’s Gap Insurance Cost?
Alternatives to Progressive Loan/Lease Payoff
Final Word: Progressive Gap Insurance
FAQs on Progressive Gap Insurance
Sources

How Progressive’s Gap Insurance Works

Gap insurance (Guaranteed Asset Protection) is designed to cover the “gap” between your vehicle’s value and your remaining loan or lease balance. Progressive’s own page answers the question “Is loan/lease payoff coverage the same as gap insurance?” with one word: “No.” It then adds that the two “may have different requirements and payout limits” and that “At Progressive, only loan/lease payoff coverage is offered.” The difference that matters to you is the cap.

Gap-style coverage typically applies only after a covered theft or a covered total loss. In other words, it’s for the “big” scenarios where the car is gone or not economically repairable.

You can read Progressive’s wording on its Loan/Lease Payoff coverage page.

What Happens After a Total Loss	What Pays First	What Loan/Lease Payoff May Add
Your vehicle is stolen and not recovered, or it’s totaled	Your comprehensive/collision pays the actual cash value (ACV) (minus your deductible)	Additional payment toward your loan/lease balance (up to your policy’s limit)
Your car’s ACV is $20,000 and you owe $27,000	Comprehensive/collision pays $20,000 (minus your deductible)	Loan/Lease Payoff adds up to 25% of $20,000, or about $5,000, leaving roughly $2,000 on you

Quick tip: “Full coverage” usually means comprehensive + collision. It does not automatically mean you have gap coverage—Loan/Lease Payoff is a separate add-on.

Does Progressive Offer Gap Insurance to Most Customers?

Progressive sells Loan/Lease Payoff as an optional coverage you add to a policy. It doesn’t publish a list of the states where it’s available, and it says the limit “can vary by state,” so the only way to know is to check your quote options or your declarations page, or ask your agent.

Progressive also notes that Loan/Lease Payoff is only available when you carry both comprehensive and collision coverage (often called full coverage car insurance).

What Progressive’s Loan/Lease Payoff Covers (And Excludes)

Progressive’s Loan/Lease Payoff is meant to help cover the remaining loan or lease balance if the ACV settlement isn’t enough. Progressive’s page puts the limit at up to 25% of your vehicle’s value, and says the exact limit can vary by state. Work out that number before you buy: 25% of a $20,000 car is $5,000, and if you’re $9,000 upside down it doesn’t finish the job.

Coverage Highlights at a Glance

Category	What to Expect
Trigger	Vehicle is stolen (covered theft) or declared a total loss after a covered claim
Payout Cap	Up to 25% of your vehicle’s value. Progressive says the exact limit can vary by state
Who Gets Paid	The money pays down the loan or lease balance. It isn’t a bonus check to you
Common Exclusions	Progressive says it “doesn’t cover additional charges related to your loan or lease, such as excess mileage fees.” Check your own policy for finance charges, late fees and missed payments
Not a Substitute For	Liability coverage, medical coverage, or repairs (see when gap insurance doesn’t pay)

A dealer “GAP waiver” is a different kind of product. It cancels part of the debt instead of insuring the car, and Virginia’s statute on waivers says they “are not insurance and are exempt from the insurance laws of the Commonwealth.” That matters for where you complain and how refunds work. The CFPB’s guide to GAP is the plainest summary, including your right to cancel an add-on at any time.

Do You Need Gap Insurance?

GAP is generally an optional product. The CFPB describes it that way. Your lender or leasing company is a different matter, and some require a gap-type product in the financing agreement to protect the collateral. The NAIC makes the same point about physical damage coverage: “collision insurance may be required by your lending institution or lessor.”

Some drivers already have gap protection buried in a lease, a loan package or a dealership add-on. Before you buy anything new, confirm whether you’re already paying for gap insurance. State Farm, for example, includes a provision called Payoff Protector with its vehicle loans, and its own page says that one “is not an insurance product.”

Progressive Gap Insurance Requirements

Progressive Loan/Lease Payoff generally makes sense only when there’s an active loan or lease and your policy includes physical damage coverage. In practice, most drivers need two things:

You’re leasing or financing the vehicle. Gap-style coverage is typically pointless once the loan is paid off. (If you’re unsure whether it’s worthwhile on an older vehicle, see gap insurance on a used car.)
You carry comprehensive and collision (“full coverage”). Progressive’s Loan/Lease Payoff is generally tied to having physical damage coverage in place. If you’re wondering why “full coverage” still isn’t the same as gap, here’s a helpful explainer: gap insurance with full coverage.

Note: Coverage rules, eligibility, and limits vary by state and policy form. Always rely on your declarations page and policy contract for the controlling terms.

Is Progressive Gap Insurance Worth It?

Loan/Lease Payoff can be a strong value when your loan balance is likely to be higher than the car’s ACV—especially early in the loan, with a small down payment, or with longer loan terms. It may be worth considering in situations like these:

Often Worth Considering	Often Easy to Skip
You’re leasing a vehicle (many lessors require gap-style protection)	Your loan balance is comfortably below ACV (little to no “gap” exists)
Small down payment or negative equity early in the loan	You have a large down payment and a short loan term
You financed the vehicle for a long term (e.g., 72–84 months)	Your vehicle is older and depreciates slowly relative to your payoff
You want protection against steep depreciation in the first 1–3 years	Your lease/loan already includes gap coverage and you can verify it in writing

Because the payout stops at 25% of the vehicle’s value, Loan/Lease Payoff helps less the further upside down you are — for example, after rolling negative equity from an old loan into a new one.

Quick tip: A simple rule of thumb: if paying off the car today would cost more than the car’s realistic market value, ask about Loan/Lease Payoff before you leave the dealership—then compare it to the dealer’s GAP product.

How Much Does Progressive’s Gap Insurance Cost?

Progressive doesn’t publish a price for Loan/Lease Payoff, and no regulator publishes one either. It’s rated like any other coverage, off your vehicle, your state and your driving record.

The most accurate approach is to request a quote with and without Loan/Lease Payoff, then decide whether the added premium is worth the protection for your loan balance.

Alternatives to Progressive Loan/Lease Payoff

If Progressive’s version isn’t available where you live, or the 25% cap doesn’t cover your gap, you have three other routes: a dealership product, a lender product, or another insurer. Travelers sells gap coverage and calls it that, and its page states no percentage cap. Here’s a starting point to compare: top companies to buy gap insurance from.

Final Word: Progressive Gap Insurance

Progressive does sell a gap-style option called Loan/Lease Payoff. It can help pay the difference between your vehicle’s ACV settlement and what you still owe after a covered total loss or theft. It is not sold as gap insurance, and it is capped at up to 25% of the vehicle’s value, with the exact limit varying by state.

Before adding it, confirm (1) you don’t already have gap through your lease or lender, (2) the payout limit is meaningful for your loan balance, and (3) your policy includes comprehensive and collision coverage. Coverage terms vary by state—your policy contract controls.

I would do the arithmetic before I bought it. Pull your payoff figure, look up what the car is worth, and take 25% of that value. If the cap covers the shortfall, Loan/Lease Payoff is the cheap way to handle it. If it doesn’t, buy real gap coverage from an insurer that writes it or from a credit union instead.

FAQs on Progressive Gap Insurance

Does Progressive sell gap insurance?

Not under that name. Progressive’s page says “At Progressive, only loan/lease payoff coverage is offered.” Loan/Lease Payoff does the same job — it helps cover the difference between your vehicle’s actual cash value and what you still owe after a covered total loss or theft — but it pays up to 25% of the vehicle’s value rather than the whole gap.

Is Progressive Loan/Lease Payoff the same as true GAP insurance?

Progressive answers that question with a flat “No.” It says the two “may have different requirements and payout limits” and that it only sells loan/lease payoff. The practical difference is the 25% cap. A dealer or lender GAP waiver is a third thing again: it cancels part of the debt instead of insuring the car, and under Virginia’s statute waivers “are not insurance.”

What is the 25% limit on Progressive gap insurance?

Progressive pays “up to 25% of your vehicle’s value,” and says the exact limit can vary by state. On a car worth $20,000 that’s about $5,000. If you’re $9,000 upside down on the loan, the cap leaves the rest with you.

Do I need comprehensive and collision to add Loan/Lease Payoff?

Yes. Progressive says “you can add loan/lease payoff coverage to your policy when you carry both comprehensive and collision coverage.” Those are the coverages that pay the actual cash value after a theft or total loss, so there’s nothing for Loan/Lease Payoff to sit on top of without them.

Does Progressive gap insurance cover deductibles, late fees, or finance charges?

Progressive says Loan/Lease Payoff “doesn’t cover additional charges related to your loan or lease, such as excess mileage fees.” Late fees, missed payments and finance charges are the kind of charge that language is aimed at, but Progressive names only excess mileage, so read your own policy for the rest. Don’t assume your deductible is covered either.

Is Progressive Loan/Lease Payoff available in every state?

Progressive doesn’t publish a state list, and it says the limit “can vary by state.” The way to find out is to run a quote, look at your declarations page, or ask a Progressive representative or your agent.

When should I remove Progressive Loan/Lease Payoff coverage?

Many drivers drop it once the loan balance is below the vehicle’s ACV (meaning there’s little or no gap to protect). You may also remove it when the vehicle is paid off. Review your payoff and estimated value periodically—especially after large principal payments or refinancing.

Sources

Checked October 4, 2026

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