How Much is Gap Insurance?

How much is gap insurance? It’s a common question we receive at the Bill Luke Tempe finance department, as many drivers wonder if the gap insurance price is worth the investment. For most Phoenix and Chandler drivers, the gap insurance cost is well worth it for the added peace of mind this coverage provides. Learn more about the average cost of gap insurance below and why it is such a smart investment. You’ll be glad you did!

Average Cost of Gap Insurance

How much is gap insurance? The average cost of gap insurance varies based on where you purchase your coverage.

• Purchase from your current auto insurer: When you purchase gap insurance from your regular auto insurance provider, the cost is approximately $20 per year.
• Add gap insurance onto your car loan: Some lenders allow you to add the cost of gap coverage onto your loan amount. You’ll typically end up paying a flat fee that’s anywhere between $500 to $700.
• Purchase standalone gap insurance: If you purchase gap insurance on your own in Queen Creek, the average cost of gap insurance is often a one-time fee of $200 to $300.

Is the Gap Insurance Price Worth It?

Because the gap insurance cost per year is fairly minimal, this coverage will fit into the budget of most drivers. We encourage every driver to consider gap coverage. Here are just a few of the many reasons why this extra safety net is a smart choice.

• If your vehicle is stolen or damaged in an accident and deemed a “total loss,” gap insurance will cover you.
• If you get into an accident and you owe more on your auto loan than what the car is worth, gap insurance will help to cover the difference.

Learn More About the Gap Insurance Price with Bill Luke Tempe

Would you like to know more about the gap insurance cost for your vehicle? We’d be happy to answer any questions you may have. Reach out to us today for more information. We’d also be happy to discuss comprehensive insurance coverage as well as liability coverage so you can drive with complete confidence anywhere the road takes you.