How Much Is Gap Insurance?

After purchasing a new or used vehicle for your Denver commutes, you may be considering gap insurance to protect your purchase. This leads to the question, “how much is gap insurance?” Gap insurance price depends on whether you purchase it through your regular auto insurer or add it onto your auto loan. Learn more with Courtesy Acura, below!

Gap Insurance Cost

As we noted above, the average cost of gap insurance will vary depending on who you purchase your coverage with. Here’s an overview of your options:

• Purchasing through your regular auto insurer: When you purchase gap insurance from your regular auto insurer who provides your comprehensive and collision coverage, the gap insurance price is typically just $20 per year.
• Adding gap insurance coverage onto your auto loan: If you’re taking out a loan to purchase your car, many lenders offer the option to add gap insurance onto the agreement. If you go this route, you’ll usually pay a one-time flat rate rather than making regular payments. The average gap insurance cost, in this case, ranges from $500 to $700.
• Purchasing standalone gap insurance: Some auto insurers don’t offer gap insurance as part of your overall policy but do offer it as a standalone, separate coverage option. When you choose this option, the average cost of gap insurance is a one-time fee of $200 to $300.

Is Gap Insurance Worth it?

Purchasing gap insurance through your regular insurer for $20 per year is pretty affordable, but with the other options ranging in cost from $200 to as much as $700, you may be wondering if gap insurance is really worth it. Here are a few reasons why Aurora drivers might want to get the added coverage:

• If your vehicle is stolen or incurs enough damage in an accident to deem it a “total loss,” gap insurance covers it.
• If you owe more on your auto loan than your vehicle is currently worth and you get in an accident, gap insurance ensures you’re fully reimbursed, rather than losing out on thousands of dollars.

Learn More at Courtesy Acura Near Highlands Ranch!

If you have any lingering questions about the average cost of gap insurance, feel free to contact us or get in touch with our finance professionals. We’re always happy to assist! We also encourage you to consult our car-buying tips for expert advice on topics like buying vs. leasing, leasing a car with bad credit and more.