How Much is Gap Insurance?

If you are looking to invest in a new vehicle and you are considering the additional coverage provided by gap insurance, then you may be wondering about gap insurance prices. Gap insurance isn’t required by law, so you may be wondering if it’s worth it. Well, our finance team at Basil Ford explores the average cost of gap insurance to help you decide if you want this coverage for your rides around Buffalo. 


Gap Insurance Cost

When you are deciding on gap insurance, you may know that it covers a variety of issues such as:

Gap Insurance Covers:

  • Theft
  • Fire
  • Vandalism
  • Accident
  • Acts of nature (tornado, hurricane, flood, etc.)
  • Gap insurance price varies depending on if you are going through a regular auto insurer or you are adding it to your auto loan. 

    • Purchasing through your auto insurer: The average cost of gap insurance in this case is $20 a year. 
      • Adding onto your auto loan: When you are purchasing a car, you can get gap insurance added on for a one time flat rate ranging from $500 to $700.
        • Standalone gap insurance: In this case, the gap insurance cost is available as a separate option for just $200 to $300. 
        • Is Gap Insurance Worth the Cost?

          Gap insurance can be very affordable for Cheektowaga and West Seneca drivers, but if it comes as a one time fee this can seem unnecessary. Our team at Basil Ford encourages the purchase of gap insurance for a few reasons:

          • If your car, truck or SUV is stolen or has enough damage in an accident to deem it a “total loss,” gap insurance can be beneficial.
          • If you owe more on your auto loan than your vehicle is currently worth and you find yourself in an accident, gap insurance coverage ensures you are fully reimbursed, rather than losing out on your vehicle. 
          • Do I Need Gap Insurance?

            As mentioned above, gap insurance isn’t legally required, but it is recommended in some cases. If you are purchasing a new car, it is highly recommended. This covers your total loss if you are in an accident. As an optional coverage, it is worth speaking with your insurance provider to get a quote and determine whether you’d like to opt-in for this coverage.

            Learn More About Gap Insurance Coverage at Basil Ford

            If you have more questions about gap insurance or any insurance coverage needs, you can contact our team at Basil Ford. We are happy to answer your questions like, “How much is gap insurance, and is gap insurance worth it?” We are excited to ensure your safety around Rochester. Check out more of our car buying tips to learn about the buying process!