Does Progressive Sell Gap Insurance?
Last Updated on February 5, 2026
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.
This coverage is especially common among big national insurers (including State Farm and GEICO), but the details matter: payout limits, state availability, and what “gap” costs it won’t pay can vary.
Below is a practical, up-to-date guide to Progressive’s Loan/Lease Payoff coverage—what it does, what it doesn’t do, and how to decide if it’s worth adding to your policy.
- Progressive Offers a GAP-Like Add-On: It’s called Loan/Lease Payoff and is designed to help when you owe more than your car’s value after a total loss.
- Expect a Built-In Payout Cap: Progressive commonly limits the benefit to a percentage of the vehicle’s value (often up to 25%, varying by state).
- 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: Many leases and some loans already include gap coverage—buying it twice usually isn’t worth it.
- 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
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 doesn’t label its product as “gap insurance” on the declarations page—its version is called Loan/Lease Payoff, and it’s similar to gap coverage with one key difference: it has a built-in payout 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.
Progressive’s own explanation is on its official Loan/Lease Payoff coverage page: https://www.progressive.com/auto/insurance-coverages/loan-lease-payoff/.
| 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) |
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?
In most states, Progressive offers Loan/Lease Payoff as an optional endorsement. However, coverage availability and limits vary by state and by policy—so the simplest way to confirm 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 insurer’s ACV settlement isn’t enough. Progressive states the payout is generally limited to no more than 25% of your vehicle’s value, though the exact limit can vary by state.
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 | Typically capped (Progressive commonly cites up to 25% of vehicle value; exact limit varies by state) |
| Who Gets Paid | Payment is usually sent to your lender/lessor (the lienholder), not as a “bonus check” to you |
| Common Exclusions | Often won’t cover loan/lease add-ons like finance charges, excess mileage, late fees, missed payments, or other contract penalties |
| Not a Substitute For | Liability coverage, medical coverage, or repairs (see when gap insurance doesn’t pay) |
If you’re comparing dealer “GAP waivers” to insurance-based gap coverage, the CFPB has a helpful consumer explanation of what GAP is (and why it’s smart to compare prices and refund rules): https://www.consumerfinance.gov/ask-cfpb/what-is-guaranteed-asset-protection-gap-insurance-en-797/.
Do You Need Gap Insurance?
No state requires gap insurance. That said, some lenders or leasing companies may require you to carry a gap-type product as part of the financing agreement to help protect the collateral.
Also, many drivers already have some form of gap coverage baked into a lease, loan package, or dealership add-on. Before you buy anything new, confirm whether you’re already paying for gap insurance. If you already have coverage, doubling up usually isn’t worth it.
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 Progressive’s Loan/Lease Payoff is commonly capped (often up to 25% of vehicle value), it may be less helpful if you’re extremely upside-down on the loan (for example, after rolling negative equity into a new loan).
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 universal price for Loan/Lease Payoff because the cost depends on your vehicle, state, driving profile, and other rating factors. In many cases, it’s priced as a modest add-on to a policy that already includes comprehensive and collision coverage.
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 in your state—or the payout cap doesn’t meet your needs—there are other ways to get gap protection, including dealership products, lender options, and other insurers. 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, but it’s commonly limited (Progressive often cites up to 25% of the vehicle’s value, with state-specific variations).
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.
