The 25% Limit Warning: What Progressive Gap Insurance Actually Covers

A detailed look at The 25% Limit Warning: What Progressive Gap Insurance Actually Covers, covering critical updates.

Does Progressive offer genuine gap insurance?
No. Progressive does not sell traditional, uncapped gap insurance. They offer an endorsement labeled "loan/lease payoff coverage," which limits payout additions to a maximum of 25% of the vehicle’s actual cash value at the time of loss.

Can I buy Progressive's loan/lease payoff coverage on liability-only policies?
No. Progressive requires policyholders to carry both active collision and comprehensive coverage on the insured vehicle before allowing the loan/lease payoff endorsement to be added.

Does Progressive pay my loan balance if my car is stolen?
Yes, provided comprehensive coverage is active and the vehicle is declared an unrecovered total loss. Progressive will calculate the car's market value and apply the loan/lease payoff coverage up to the contractual 25% limit toward your balance.

Does Progressive cover my collision deductible during a total loss?
No. Progressive deducts your selected collision or comprehensive deductible from the vehicle's cash value payout. You remain personally responsible for that deductible amount when settling with your lienholder.

How can I tell if Progressive's 25% coverage is enough for my loan?
Check your current loan balance and compare it against your vehicle's fair market value using reputable pricing guides. If your loan balance exceeds your car's resale value by more than 25%, Progressive’s coverage will leave you responsible for the difference in a total wreck.