Insure Connecticut's Ultimate Guide to Secure Your Future: Expert Insurance Tips and Tricks

Loan/lease payoff coverage is an optional add-on to your comprehensive and collision insurance that helps pay off part of your remaining car loan or lease balance if your vehicle is totaled or stolen and declared a total loss. It's most commonly sold under this name by Progressive, and it typically adds a few dollars a month to your premium — but it comes with limits that catch a lot of drivers off guard.

The main difference between Progressive’s Loan/Lease Payoff and traditional GAP insurance is that Progressive caps its payout at 25% of your car’s Actual Cash Value (ACV). Traditional GAP insurance covers the entire financial deficit between your vehicle's value and your remaining loan balance, eliminating out-of-pocket loss exposure.