Last updated: March 2026
How Much Does Gap Insurance Cost?
Cost Breakdown by Type
| Type / Procedure | Without Insurance | With Insurance |
|---|---|---|
| Dealer Gap Insurance (one-time) | $0 – $0 | $400 – $800 |
| Insurance Company Gap (monthly add-on) | $0 – $0 | $20 – $40 |
| Standalone Gap Policy (one-time) | $0 – $0 | $200 – $400 |
What Affects the Cost
- Your age, location, and health status
- Coverage level and deductible chosen
- Provider or carrier
- Claims history
- Credit score (for some insurance types)
- Discounts available (bundling, loyalty, safe driver, etc.)
Insurance Coverage
Typical coverage: Gap insurance covers the difference between what you owe on a car loan and the car's actual cash value if it is totaled or stolen.
Insurance costs vary widely based on coverage level, location, age, and claims history. Shopping around and comparing quotes is the single most effective way to save money on insurance premiums.
How to Save Money
- Compare quotes from at least 3-5 providers
- Bundle policies (home + auto) for 10-25% discounts
- Choose higher deductibles for lower monthly premiums
- Ask about all available discounts
- Review coverage annually during open enrollment
- Consider employer-sponsored plans which subsidize 50-80% of premiums
Related Procedures & Costs
Frequently Asked Questions
Gap insurance costs $20 to $40 per month when added to your auto policy, or $200 to $800 as a one-time purchase through a dealer or standalone provider.
Gap insurance is worth it if you owe more than your car is worth, which is common with low down payments, long loan terms, or high-depreciation vehicles.
You can cancel gap insurance once your loan balance is less than or equal to your car's market value, typically after 2 to 3 years of payments.