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How Much Does GAP Insurance Cost?

Are you currently financing or leasing a vehicle? If so, you really should think about having more insurance than just the bare minimum that is required by your state. In fact, it may even be that your lender will require you to carry a certain amount of insurance, and will probably recommend that you have GAP insurance. While this is an addition to the policy that many people don’t feel they can afford, in a lot of cases, they really can’t afford not to have this type of coverage.

What Is GAP Insurance?

how much does gap insurance cost

Not everyone needs to have GAP insurance, which stands for Guaranteed Auto Protection. This is coverage that is over and above your regular coverage, which will at the very least include liability but could also include comprehensive, collision and personal injury protection. If you have recently purchased a new vehicle or you are planning on doing so in the near future, you may want to consider having GAP insurance. It is used when you have an accident and your vehicle is a total write-off.

The reason why people should have this coverage is simple: your car is never going to be worth what it was the day you drove it off the lot. If you have an accident and you total the vehicle, your insurance will only cover what the vehicle is worth at the time of the accident, and you may actually owe a lot more than that on the loan.

GAP insurance will cover the difference between what you owe and what your car is worth, so you aren’t out any money out-of-pocket. There are limits to how much will be paid by this sort of insurance policy, and it may not cover the full balance of your loan in some cases. Here is the best gap insurance guide we have seen that explains how gap insurance works. It visually explains more about the coverage, costs and providers.

Is GAP Insurance a Legal Requirement?

In most states, drivers are only required to carry a certain amount of liability insurance. Anything else they have for coverage is extra, including GAP insurance. There is an exception to this rule. If you live in some states, it may be a requirement that you have it if you are buying a new vehicle. Dealers are required to offer this coverage to customers in these states. GAP insurance is available in 49 states.

Ways to Save Money on Car Insurance

Just because you need to carry a certain amount of car insurance, it doesn’t mean that you have to pay a lot of money for it. Yes, insurance can be expensive, but you can learn about many different ways to save money on your premiums and still have all of the coverage you need. When you are asking, “how much does gap insurance cost”, don’t forget to ask about the discounts that you may be eligible to receive. Some of these discounts could include:

  • Safe Driver Discounts – Most insurers will reward their customers for being safe drivers. You need to have a clean driving record for a certain period of time before you can qualify for this type of insurance discount. You will have even more of an incentive to continue to keep your driving record clean because for every year you do your rates will continue to decrease.
  • Multi-Policy Discounts – If you also need to have home owners and life insurance policies, you should inquire about combining all of your policies into one bundled package. This is an excellent way to save money on all of the insurance you need. Some insurers only deal with home, auto or life insurance, so if you want to have a bundle to save money, you will have to look for a full service insurance company.
  • Multi-Vehicle Discounts – Having more than one vehicle means insuring more than one vehicle. If you have two or more vehicles, you can ask about having them all on one insurance policy to save money. Most insurers will be more than happy to add vehicles to your policy. It will raise the rates a little bit, but it is a lot less expensive than having a separate policy for each vehicle.
  • Driver Training Discounts – You can take driver training courses that will help to lower the cost of your car insurance. When most of us think of these courses, we think about driver’s ed classes in high school. The classes are pretty much the same, but anyone can take them to help them be better drivers and get discounts on their car insurance.


These are just a few of the car insurance discounts that you may be eligible to receive. When you are shopping for insurance quotes, and you want to know how much does GAP insurance cost, don’t forget to ask about every way possible to save money.

Getting the Best Deals on GAP Insurance

So, how much does GAP insurance cost? It really depends on a number of factors, including the insurance company you ultimately decide to deal with. It is never a good idea to take the first insurance policy that is offered to you for a number of reasons. For one thing, if you take the first one, how will you ever know if you could have gotten a better deal elsewhere?

The only way you are ever going to know which insurance company has the best rates on the insurance products you need, including GAP insurance, is to shop around. You need to get quotes from a lot of insurance companies, otherwise you will never know if you are getting the best deal or not. Getting insurance quotes is easier than ever, and it only takes a few minutes. If you let us help, you don’t have to do much of anything yourself, except sit back and wait for the quotes to come in. Just give us your zip code, and we will get you all kinds of quotes from insurers in your area, as well as national insurers. You will learn how much does GAP insurance cost, and you can decide which insurer is going to offer the best deals on all of the coverage you need.