Progressive GAP Insurance: What Loan/Lease Payoff Covers

Progressive does not offer traditional GAP insurance. Its equivalent product is called Loan/Lease Payoff Coverage, which pays the difference between your car's actual cash value and your outstanding loan or lease balance after a total loss, but only up to 25% of ACV. Standard GAP insurance has no such cap. If your shortfall exceeds 25% of your car's ACV, Progressive's product will not cover the full amount. For most drivers with standard loan terms and a down payment, the cap is sufficient. For drivers with rolled negative equity or long loan terms, it may not be.

Progressive's Loan/Lease Payoff Coverage costs approximately $4 per month as of 2025, which is below the $7 per month national average for GAP coverage (Insure.com, 2025). Exact pricing depends on your vehicle, state, and policy details. Progressive does not publish a flat rate, so your actual cost will appear when you add the coverage to your policy. Confirm current pricing at progressive.com or through the app.

Yes. Progressive's Loan/Lease Payoff is capped at 25% of your car's actual cash value at the time of the total loss. The cap is calculated against the original ACV, not the post-deductible net payout. For a vehicle with a $32,000 ACV, the maximum payout is $8,000. If your loan balance is $45,000, that is a $13,000 shortfall. The cap pays $8,000 and you still owe $5,000 out of pocket. Standard GAP insurance from a credit union or specialty provider does not have this cap. See State Farm GAP insurance for a comparison with another major insurer's approach.

Yes, you can add Loan/Lease Payoff to an existing Progressive policy, but eligibility depends on the vehicle's age and mileage at the time you add it. Progressive sets a window for when the coverage can be added. Confirm the current vehicle age and mileage limits directly at progressive.com before attempting to add it. If your vehicle is outside the eligibility window, the option will not appear in your policy's optional coverages.

No. Progressive's Loan/Lease Payoff does not cover your comprehensive or collision deductible. The deductible is subtracted from your ACV payout before the Loan/Lease Payoff calculation begins. For example, if your car's ACV is $32,000 and your deductible is $500, the base insurance payout is $31,500. However, the 25% cap is calculated against the original ACV of $32,000 — not the post-deductible net payout of $31,500 — so the maximum Loan/Lease Payoff payout remains $8,000 in this example. Factor your deductible into any shortfall calculation, as it reduces the base payout but does not reduce the cap ceiling.

Progressive's Loan/Lease Payoff wins on price, at approximately $4 per month as of 2025 versus the $7 per month national average (Insure.com, 2025), and is sufficient for drivers with standard loan terms, a 10% to 20% down payment, and no rolled negative equity. Standalone GAP wins when your expected shortfall could exceed 25% of ACV: specifically, if you rolled negative equity from a previous vehicle into your current loan, financed with an 84-month term and no down payment, or bought a vehicle with a known rapid depreciation rate. In those scenarios, the 25% cap leaves a real balance unpaid. Buy standalone GAP through a credit union or specialty provider if any of those conditions apply to you.