How Much is Gap Insurance?

After you buy a new or used car in Jacksonville, you have a lot of insurance coverage options to consider. You may find yourself asking, “How much is gap insurance and what does it cover?” Gap insurance cost depends on how you acquire it. Generally, Camp Lejeune drivers have two options: purchase gap insurance from their insurer or add it to their auto loan. Learn more about the gap insurance price and whether it’s worth it! 

Average Cost of Gap Insurance 

Again, the average cost of gap insurance varies depending on who it’s purchased from. Here’s an overview of your options:

• Purchase from your current auto insurer: Usually, gap insurance costs about $20 per year when you purchase from your regular auto insurer, i.e. the same insurer who provides your comprehensive and collision insurance. 

• Add gap insurance onto your car loan: Many lenders give borrowers the option of adding gap insurance onto their car loans. Choosing this option usually means you’ll pay one flat fee for coverage, as opposed to yearly payments. Costs range from around $500 to $700.

• Purchase standalone gap insurance: Depending on your insurer, you may not be able to get gap insurance as part of your overall insurance plan. Instead, you may be able to purchase it on its own. In this case, the average cost of gap insurance is a one-time fee of $200 to $300.

Is the Gap Insurance Price Worth It?

Because the gap insurance cost per year is fairly minimal, chances are it will be easy to work into your budget. Whether you shoot for paying $20 per year or paying one flat fee, you can commute through Richlands and Sneads Ferry in confidence. Here are a few reasons why adding this bit of extra coverage is a great idea, whether you have a new or used car: 

• Should your vehicle ever be stolen or damaged in an accident and deemed a “total loss,” gap insurance will cover you. 
• If you get into an accident and you owe more on your auto loan than what the car is worth, you’ll be covered under gap insurance.

Get More Car-Buying Tips from Marine Chevrolet! 

Now that you know the answer to the question, “How much is gap insurance?” it’s time to learn more about other affordable ways you can protect your car. Do you have more questions about gap insurance prices? Contact us or speak with our finance team. We’re always happy to help! We also suggest you check out our car-buying tips for more advice on related topics like buying vs. leasing, trading in a financed car, and more.