How much is gap insurance in Kansas

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Drivers in Kansas pay $1,990 per year for gap insurance – $93 more than the national average.

Gap insurance, available from top insurers like Nationwide and Travelers, helps protect drivers who lease or finance their vehicles. If your car is totaled or stolen, it covers the difference between its value and what you still owe on your loan or lease. Some insurers may refer to it as loan or lease payoff coverage.

Your state affects how much gap insurance costs. In Kansas, the average rate is $1,990 per year, or about $166 per month.

What is gap insurance?

If your car is declared a total loss or stolen, gap insurance can help cover the difference between its actual cash value and what you still owe on your loan or lease. It’s an optional add-on, but it can save you from paying out of pocket.

When you finance a new car, it’s easy to overlook how quickly it loses value once you drive it off the lot. In many cases, you’ll owe more on your loan than the car is actually worth.

If your car is totaled, your insurer will reimburse you based on its actual cash value, not what you still owe on your loan. If your loan balance is higher than the payout, you’re responsible for covering that gap – unless you have gap insurance, which can cover the difference.

“When an accident or theft occurs, a driver usually gets paid out on the vehicle’s cash value from their standard insurance coverage,” says Richard Howe, a car accident attorney in Atlanta. “However, without gap insurance, you will still be on the hook for the remaining amount in your agreement. Gap insurance provides peace of mind to drivers that they will be financially protected.”

“For instance, let’s say your car is totaled and the actual cash value is determined to be $15,000. However, you still owe $20,000 on your loan. Traditional auto insurance would only cover up to the actual cash value, leaving you with a $5,000 deficit,” says Howe.

“But if you have gap insurance, this difference would be covered, relieving you of the financial burden.”

Average cost of gap insurance in Kansas

What you pay for gap insurance will depend on your carrier, the state you live in, the make and model of the car you insure, as well as other factors. The average cost of gap insurance in Kansas is $1,990 per year, or $166 per month.

“Gap insurance is an optional coverage that is usually very reasonably priced, typically less than $100 per year in additional premium when added as an endorsement to your existing auto insurance policy,” says Mark Friedlander, senior director of media relations at the Insurance Information Institute (Triple-I), an insurance industry trade group.

“Gap insurance rates are based on the amount of your loan or lease agreement. It is typically not based on other common rating factors such as credit record.”

Cheapest gap insurance companies in Kansas

In Kansas, Nationwide provides the most affordable gap insurance, at $1,363 per year or $114 each month. On the other hand, Farmers has the highest premiums at $2,219 annually or $185 monthly.

The chart below shows the average annual cost of gap insurance from various insurers in Kansas.

How much is gap insurance per month in Kansas?

The monthly cost of gap insurance can vary, but here’s what you can typically expect to pay:

Gap insurance rates in Kansas’s top cities

Gap insurance rates often depend on your location. The table below lists the average annual costs in major metro areas across Kansas.

Gap insurance rates for different vehicle types

Your gap insurance rate can vary depending on the make and model of your car.

“Luxury cars, sports cars, and SUVs – typically with higher purchase prices – might also come with higher gap insurance premiums. That’s because these vehicles tend to depreciate at different rates compared to standard sedans or compact cars, posing a greater risk to insurers,” Howe says.

The age of your vehicle plays an important role in how much you pay for gap insurance.

“Newer vehicles, which depreciate more rapidly in the first few years, represent a higher risk for insurers offering gap coverage. As a result, a brand-new car might attract a higher gap insurance premium compared to a model that is several years old,” Howe says. “This reflects the insurer’s risk assessment, considering the steeper depreciation curve and the greater likelihood of a significant gap needing coverage soon after the purchase.”

When does gap insurance expire?

If you’re financing or leasing your car, gap insurance is worth keeping. It can save you from paying out of pocket if your car gets totaled or stolen.

“However, Gap insurance is typically most relevant during the first few years of new car ownership,” Howe says.

That’s usually when you owe more on your loan than the car is worth.

“Most car buyers benefit from gap insurance when the vehicle is less than three model years old. This coverage is usually aligned with the duration of the car loan or lease, often making it unnecessary beyond a few years because the loan balance decreases to fall below the car’s actual cash value,” Howe says.

You can drop gap coverage once your loan balance exceeds your car’s actual cash value. Many insurers also drop this coverage after a certain number of years for the same reason.

Where to buy gap insurance

Gap coverage is sold in three places, and each has its own price tag and rules:

• Your auto insurer: Most national and regional carriers let you add gap as a rider to your regular policy for about $20 to $40 a year. Because it’s part of your insurance bill, you can cancel it as soon as your loan balance drops below the car’s value, so you never pay for coverage you don’t need.
• Dealerships: Finance managers often offer gap insurance for $400 to $700, rolled into your loan. It’s convenient but typically the most expensive option due to added interest.
• Banks and credit unions: Some lenders offer gap insurance as a standalone policy. It’s usually mid-priced, but cancellation rules vary; some refund unused premium, others don’t.

Before you buy gap insurance, compare rates, check cancellation policies and look for perks such as deductible reimbursement. Shopping around can help you save big over your loan or lease term.

The bottom line

Comparing gap insurance rates from multiple insurers can save you money. Your state, vehicle type, and personal factors all play a role in pricing, so shopping around could help you find significantly cheaper coverage.

Whether gap insurance makes sense for you depends on the age and value of your financed or leased car. When speaking with insurers or agents, don’t hesitate to ask questions – understanding your coverage fully is key to making the right choice.

Methodology

Insure.com commissioned Quadrant Information Services in 2023 to get annual and monthly gap insurance rates for male and female drivers aged 40 who drive a Honda Accord LX with a clean driving record and good insurance score and carry a full coverage car insurance policy with limits of 100/300/100 and $500 comprehensive/collision deductibles.

To evaluate the rates, we have compared 53,409,632 insurance records from 170 insurance companies across 29,152 cities and 34,588 ZIP codes across the nation.

Shivani Gite

Contributing Writer

 

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Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.