When purchasing a new or used vehicle, there will be plenty of insurance coverage options to consider. One of these is gap insurance. So, how much is gap insurance and what does gap insurance cover? Learn more about this type of insurance, how much it costs, and what it covers with the Luther Mazda of Lee's Summit finance team today before deciding to opt for it.

Average Cost of Gap Insurance

The price of gap insurance depends on where you purchase it. Here’s a breakdown of how much this insurance will cost on average at the different places you can buy it:

• Purchase from your current auto insurer: Usually, gap insurance costs about $20 per year when you purchase from your regular auto insurer – the same insurer who provides your comprehensive and collision insurance. 
• Add gap insurance onto your car loan: Many lenders give car buyers the option of adding gap insurance onto their car loans. You will then pay one flat fee for the coverage instead of yearly payments, which will range from around $500 to $700.
• Purchase standalone gap insurance: There is a chance you will not be able to get gap insurance as part of your overall insurance plan. Instead, you could purchase it on its own, and there is a one-time fee of $200 to $300.

Is Gap Insurance Worth it?

Gap insurance is something many car-buyers work into their budget but is gap insurance worth it? There’s a variety of reasons why adding this coverage is a good idea. Check out a few reasons here:

• If your vehicle is ever 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 are covered under the gap insurance.

Find More Car Buying Tips from Luther Mazda of Lee's Summit!

After learning about how much gap insurance costs and what it covers, get in touch with our finance team to talk through your options. If you’re interested in more car-buying tips, we can help with that as well. Contact us today for more!