How Much Is Gap Insurance?

So you’ve taken out a loan for your new Grand Prairie ride and you are wondering if there is any insurance that will help pay off your auto loan if your car is ever stolen or totaled and you still owe more than the car’s depreciated value. That’s why many Fort McMurray drivers consider gap insurance! So how much is gap insurance? It will depend if you are purchasing from your current insurer or if you are adding optional coverage. Find out the gap insurance price and the average cost with our finance team at Southview Acura below.

What Is The Average Cost of Gap Insurance?

While there is no one-size-fits-all answer to “How much is gap insurance?” our finance centre at Southview Acura can break down the average cost of gap insurance for the three options. Take a look at the gap insurance cost according to where you buy the coverage from below!

Buy From Your Current Auto Insurer

Planning to buy extra peace of mind from your current auto insurer on top of your comprehensive and collision insurance? The gap insurance price is usually $25 per year when you buy from your current auto insurer.

Add Onto Your Car Loan

When you are buying your vehicle, your lender will most likely offer you the option to add gap insurance onto your loan. If you decide to go this route, you will pay one flat fee instead of yearly payments and the gap insurance cost varies from $624 to $874.

Buy Standalone Gap Insurance Coverage

For Sherwood Park drivers who are not able to add gap insurance to their overall insurance plan, they will have to buy it on its own. The average cost of standalone gap insurance is a one-time fee of $250 to $375.

Is the Gap Insurance Cost Worth It?

Many drivers find gap insurance to be extremely valuable as it is fairly affordable and can fit into their budget. In addition to the extra peace of mind, you will have less to worry should the following situations happen:

• If your vehicle is stolen or damaged in an accident and deemed a “total loss,” you will be covered by your gap insurance.
• If you get into an accident and you owe more on your auto loan than what the car is worth, gap insurance will pay for it.

Learn More Car-Buying Tips from Southview Acura

Now that Southview Acura told you about the average cost of gap insurance for different situations, let’s learn more car buying tips to keep you protected on the Leduc road! Feel free to contact us and ask any questions you have. Safe driving in the Edmonton area! While you’re here, be sure to read our overview of what liability insurance covers!