(800) 253-1482Missouri Gap Insurance Protects Your Finances
Summary: Gap insurance is a smart option for Missouri drivers, helping cover the gap between a vehicle's value and the remaining loan balance after a total loss. With an average auto loan debt of around $5,000 for drivers in the Show-Me State, gap coverage can prevent financial strain in case of an accident or theft. By comparing third-party options, drivers can often find cheaper alternatives to dealership coverage. Gap insurance is affordable and bundling it with other policies can lead to further savings. Estimated Read Time: 5 mins
If you’re in a wreck, there is plenty to deal with and if you’re leasing or financing a vehicle, one thing you may overlook is covering your note. However, with gap insurance, drivers can worry less and protect their finances.
On average, drivers in Missouri maintain $4,740 worth of auto loan debt, which may be better than many other states but is still a considerable financial burden for a lot of households.
Gap coverage helps cover your car note so that you can focus more on getting back on the road, rather than paying for a vehicle that is totaled or stolen.
What Is Gap Insurance In Missouri?
Gap insurance protects car owners in Missouri who owe more on their vehicle than its current value. It bridges the gap between your car's actual cash value (ACV) and the remaining loan or lease balance if your car is totaled or stolen.
Vehicle depreciation is rapid, making gap coverage especially useful for avoiding financial setbacks with affordable protection that saves you from paying for a vehicle you no longer can drive.
While comprehensive and collision insurance cover theft and accidents, these policies often have limits that may not fully restore your loss. Once those limits are reached, any remaining costs fall on you.
Without this protection purchasing a replacement vehicle can be financially difficult for many.
However, for drivers looking for an affordable way to protect themselves beyond standard auto insurance, gap insurance offers peace of mind.
It ensures you're covered financially, helping you avoid the burden of paying for a totaled vehicle while also needing to finance a new one.
How It Works
If your vehicle is totaled or stolen, you can file a claim with your insurance carrier to recover your finances.
With gap insurance coverage, you'll receive the difference between your car's value and the amount still owed on your loan, minus your deductible. For example:
- If you still owe $20,000 but your vehicle’s value is only $15,000, the difference of $5,000 is what you would still owe your lender.
- While you’ll need to meet your deductible, once you submit your claim, your car gap insurance policy will cover the remaining $5,000.
Leased Vehicles
Getting car insurance with gap coverage during your lease is a smart way to protect your finances.
While many lease agreements include gap coverage, you can often find cheaper third-party options from insurance providers that offer the same protection.
Drivers should always compare their options to avoid paying higher premiums for protection.
Is Gap Insurance Worth It for MO Drivers?
For many drivers in Missouri, gap insurance can be a smart choice, but how do you know if it’s right for your needs?
Here are some factors to consider when deciding if gap coverage is right for you:
- You owe more on your vehicle than it’s currently worth.
- You’re financing your vehicle and made a small down payment (less than 20%).
- You’re leasing your vehicle.
- Your vehicle depreciates faster than most others.
- You drive frequently or are prone to accidents.
- You live in an area with a high rate of auto theft.
Since gap insurance is an affordable option, if any of these points apply, it might be worth looking into your options.
Furthermore, newer vehicles often fall into one if not multiple categories listed above, as a result, drivers with such vehicles often find value in gap coverage.
This is especially true if you’re “upside-down” on your loan or lease early on when gap coverage is most beneficial.
Even if you have traditional full coverage auto insurance, it doesn’t cover everything.
Therefore, if you want extra protection, you may need optional coverages like gap insurance.
Financial risks can still arise, such as the cost of labor, parts, or loan balances after a major accident.
This is why gap insurance is valuable for drivers in Missouri even if they have full coverage.
Pros and Cons of Missouri Gap Coverage
Deciding whether or not gap insurance is right for you, it’s always a good idea to weigh the pros and cons. Here are a few key considerations for drivers in Missouri to review:
|
Pros |
Cons |
|
The cost of coverage is typically affordable |
Drivers with older/less valuable vehicles receive less value |
|
Extra protection for your finances |
Some exclusions apply |
|
Protection for drivers who lease their vehicles |
Previous loan balances aren’t covered |
Refunds
Drivers may be able to receive a full refund by canceling gap insurance, however, it depends greatly on your policy.
Some gap coverage may only be canceled within 30 days, and there are only certain scenarios that qualify.
Here are some common examples that you may experience in which a refund may be issued:
- Pay off your car loan early
- Sell your vehicle
- Switch coverage
Remember, policies vary depending on your terms and the remaining loan balance, so it's best to check with your insurance agent for specific terms. Not all policies offer refunds.
How Much Is Gap Insurance in Missouri?
The cost of gap insurance varies among drivers and unlike other states, Missouri doesn’t have a cap on how much your premiums will be.
With that being said, the biggest factor that determines how much you’ll pay is the value of your loan.
Depending on where you purchase your coverage and the protection you need, drivers can expect to pay several hundred dollars in a one-time fee for their gap insurance coverage or shop among carriers for monthly premiums that are generally between $2 and $30 per month.
Where to Buy in MO
You can purchase gap coverage from dealers, lenders, and insurance carriers.
If you want to find the best coverage at the right price, it’s always recommended that you compare your options so that you avoid overpaying.
Furthermore, if you have home insurance in Missouri or a renters policy, you can bundle your coverage together.
Below is our free, no-obligation auto insurance quote tool, featuring rates from gap insurance and other forms of car insurance from top-rated, trusted carriers.
Shop and compare personalized coverage or ask an agent how we help drivers save an average of 40% on their premiums by switching:
