How much is gap insurnace per month– GAP insurance can be a good idea. It helps cover what you owe if your car gets wrecked or stolen.
If you’re paying off a car loan and something happens to your car like it gets totaled in an accident or stolen, gap insurance steps in When you claim the total loss, your regular insurance pays you what your car is worth, called the actual cash value (ACV). But if what you still owe on your loan is more than what your car’s worth, that’s where gap insurance helps out. It covers the difference so you’re not left paying off a loan for a car you no longer have. Keep in mind, that even if your car is gone, the loan still needs to be paid off.
Why do we need the Insurance?
The reason why we need to take a gap insurance.
- People who didn’t put much money down when they bought their car. If you owe a lot more than your car is worth.
- If you own a sports car that loses its value quickly, GAP insurance can be a good idea. It helps cover what you owe if your car gets wrecked or stolen.
- If your car loan includes extra stuff like a warranty or previous loan debt, your debt might be more than what your car’s worth. GAP insurance can help there too.
- Lastly, if your car has been driven a lot and has high mileage, its value can drop fast. GAP insurance can protect you from owing more than your car is worth.
Cost of Insurance
The average annual cost of gap insurance is explained in the below table.
| Company | Average Annual Cost |
| Travelers | $34 |
| Progressive | $38 |
| Auto-Owners Insurance | $48 |
| American Family | $51 |
| State Auto | $52 |
| Erie | $58 |
| Shelter | $141 |
| Westfield | $70 |
| Average | $61 |