How Much is Gap Insurance?

When you buy a new or used car at Morrie's Auto Group for your Minneapolis commutes, you might be wondering, how much is gap insurance. What does it cover? Do I even need it? Our finance team is here to help you with your gap insurance price questions and any other insurance issues you might have. Contact us with your questions, and keep reading to learn more about the average cost of gap insurance. 

Average Cost of Gap Insurance 

Your gap insurance price will depend on where you purchase your vehicle in St. Paul. Here’s a look at some of the average costs of gap insurance: 

• Purchase from your current auto insurer: This gap insurance price tends to be around $20 a year. 

• Add gap insurance onto your car loan: When you add gap insurance to your car loan, it’s added as one lump sum. The average cost of gap insurance as a lump sum is $500-$700, depending on the terms of your loan. 

• Purchase standalone gap insurance: Instead of having the gap insurance cost added annually, you can get a stand-alone gap insurance policy for $200-$300. 

Is the Gap Insurance Cost Worth It? 

With its low cost and unique coverage, the gap insurance price is usually worth it for the added peace of mind you’ll get, nevermind if you have to actually use it. Gap insurance covers the difference between your car’s value and what remains on your outstanding loan should your car be totalled in an accident or stolen. 

Learn More About Auto Insurance with Morrie's Auto Group

Now that you know the answer to the question, “How much is gap insurance?”, learn more about auto insurance. Just check the Morrie's Auto Group finance portal for your favorite auto brand to get answers to more insurance questions.