How Much Is Gap Insurance?

After you’ve browsed our online inventory and picked the right car for your Long Island City needs, you may be wondering what sort of insurance coverage you’ll need. Gap insurance is a popular type of insurance that offers excellent coverage in the event of a total-loss accident. How much is gap insurance? The cost of your gap insurance coverage will depend on where you get it: either from an insurer or added to your auto loan. Learn more about the average cost of gap insurance with the experts at Major World, then contact our team to learn about our coverage options.

Gap Insurance Cost

The average cost of gap insurance will depend on where you acquire it in Queens. You have a few options when it comes to where you purchase your gap insurance, see them below:

  • Purchase From Your Current Insurer: If you already have an auto insurance coverage plan, you can typically purchase gap insurance from them for about $20 a year. This would be the same insurer who provides you with comprehensive collision insurance.
  • Add It To Your Car Loan: Some Brooklyn lenders will allow you to add gap insurance coverage to your car loan. Typically this means you’ll pay a flat fee for the coverage. The gap insurance price for this option is around $500 to $700.
  • Purchase Standalone Gap Insurance: If your insurer doesn’t offer gap insurance as part of your overall insurance plan, you may be able to purchase it on its own. In these situations, the average cost of gap insurance will be between $200 and $300 as a flat rate.

Is The Gap Insurance Price Worth It?

Because of the low gap insurance cost, the majority of Bronx drivers will be able to incorporate it into their budget. Whether you choose to pay around $20 a year with an insurer or add it into the cost of your car loan, you’ll be able to commute through Long Island City with confidence. Gap insurance is considered worthwhile by most drivers because of the coverage it offers and its low cost. If your vehicle is stolen or damaged and considered a “total loss” by your insurance company, gap insurance will cover the cost between what you still owe on your vehicle and its approximate value at the time of the loss.

Get More Car-Buying Tips from Major World!

Now that you know how much gap insurance is, you can learn about more car buying tips from Major World! You can read about the steps to buying a used car and learn about liability insurance. You can also contact our finance team if you have questions about our financing plans or if you have any questions about insurance coverage!

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