How much is gap insurance in Missouri?

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Gap insurance, offered by providers like Travelers and Progressive, protects drivers who lease or finance their vehicles by covering the difference between the car’s actual cash value and the remaining loan or lease balance if it’s totaled or stolen. This coverage is also commonly called loan or lease payoff insurance.

Where you live plays a big role in how much you’ll pay for gap insurance. Drivers in Missouri spend about $2,186 per year, or roughly $182 per month, on average.

Key Takeaways

In the event of a total loss, gap insurance covers the difference between what you owe on your car loan and its actual cash value.
Gap insurance is available as a standalone policy or on auto insurance policies that include both comprehensive and collision coverage.
The average cost of gap insurance in Missouri is $2,186.

What is gap insurance?

Gap insurance protects you if your car is totaled or stolen and your loan balance is higher than the car’s value. It pays the difference between what your car is worth and what you still owe, so you’re not stuck covering that amount yourself.

If you’ve financed your car, it’s likely worth less than what you owe-especially in the first few years. That difference can leave you financially vulnerable if your vehicle is totaled or stolen.

Insurance companies pay out the actual cash value of your car if it’s totaled, which is usually less than what you owe on your auto loan. Without gap insurance, you’ll have to pay the remaining loan balance yourself. With gap insurance, that financial gap is covered.

“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 Missouri

The cost of gap insurance varies depending on your insurance company, location and the type of car you drive. On average, gap insurance in Missouri costs $2,186 annually or $182 each 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, director of corporate communications for the Insurance Information Institute, 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 Missouri

Travelers has the cheapest gap insurance rates in Missouri at $1,563 per year or $130 per month. On the other hand, Auto Club Enterprises (AAA) offers the most expensive premiums at $2,487 annually or $207 monthly.

The table below shows average annual gap insurance rates from different insurance companies in Missouri.

Company group	Average annual premium	Gap premium
Travelers	$1,563	$48
Progressive	$2,051	$91
Auto Club Enterprises (AAA)	$2,487	$141

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How much is gap insurance per month in Missouri?

Gap insurance rates vary, but here’s what you can expect to pay for gap insurance every month:

Company group	Average monthly premium	Monthly gap premium
Travelers	$130	$4
Progressive	$171	$8
Auto Club Enterprises (AAA)	$207	$12

Gap insurance rates in Missouri’s top cities

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

City	Avg. annual car insurane premium	Annual gap insurance cost
Blue Springs	$2,070	$125
Kansas City	$2,280	$125
Springfield	$2,011	$131
St. Joseph	$2,072	$115
St. Louis	$2,620	$258

Gap insurance rates for different vehicle types

The type of vehicle you drive also impacts how much you pay for gap insurance.

“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 is also a key factor in determining gap insurance rates.

“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

There are three main ways to get gap coverage, and each has its own pricing and rules.

Your insurance company: Many national and regional car insurance companies offer gap coverage as an optional add-on to your auto policy, usually for $20 to $40 a year. Since it’s part of your car insurance policy, you can drop it once your loan amount is lower than the car’s actual value.
Dealership: Many finance managers offer gap insurance, usually for $400 to $700. The charge is added to your loan, which makes it easy, but you’ll likely pay more in the long run because of the added interest amount.
Banks and credit unions: Some banks and credit unions sometimes sell gap insurance as a standalone policy. It’s typically affordable, but cancellation policies differ – some will refund any unused premium, while others won’t.

Pro tip:

Many leasing companies automatically include gap coverage in the contract, so it’s smart to read the fine print. Buying a separate policy could mean paying twice for the same coverage.

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.

Frequently asked questions

Does gap insurance cover theft in Missouri?

Gap insurance will protect you if your vehicle is stolen and not recovered. It will also protect your vehicle if it is stolen and recovered but severely damaged to the point of being regarded as “totaled” by your insurer, per Mark Friedlander with the Insurance Information Institute. However, be aware that gap insurance does not typically cover the deductible portion of your comprehensive insurance policy.

Should I get gap insurance in Missouri?

Gap insurance is recommended so long as you have a loan or lease to cover the difference between what is owed and the depreciated value of your vehicle, according to Mark Friedlander with the Insurance Information Institute.

He recommends considering purchasing gap insurance if you have made less than a 20% down payment on the purchase of your vehicle; if you have financed the purchase for 60 months or longer; if you are leasing the vehicle (gap insurance may actually be required under the terms of a lease agreement); or if you have rolled over negative equity from an old car loan into a new loan.

Shivani Gite

Contributing Writer

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.