Coverage Gap Calculator Calculator
Estimates only. Results from this calculator are approximate and should not be used as financial advice. Actual figures may vary.See our methodology and data sources.
Frequently Asked Questions
What is a coverage gap in insurance?
A coverage gap occurs when your insurance limits are lower than potential claim costs, leaving you personally responsible for the difference. For example, if you cause $50,000 in property damage but only have $15,000 coverage, you're responsible for the $35,000 gap. Coverage gaps can result in financial hardship if you're sued.
How much liability coverage should I have?
Recommended liability limits are typically $100,000/$300,000/$50,000 (bodily injury per person/bodily injury per accident/property damage). Minimum limits (often $25,000/$50,000/$15,000) may leave you underinsured. Higher limits ($250,000/$500,000/$100,000) provide better protection. Consider your assets and risk tolerance.
What happens if I have a coverage gap?
If you have a coverage gap and cause an accident, you're personally responsible for costs above your insurance limits. This can result in: lawsuits, wage garnishment, asset seizure, and bankruptcy. Your insurance only covers up to your policy limits - anything above that comes from your personal assets.
How can I protect against coverage gaps?
Protect against gaps by: increasing liability limits ($100k/$300k/$50k minimum), purchasing umbrella insurance (adds $1M+ coverage above auto limits), maintaining adequate collision/comprehensive coverage, reviewing coverage annually, and considering uninsured/underinsured motorist coverage (protects you from others' gaps).
