How Much is Gap Insurance?

When you are shopping for a new or used car in the Hudson area, you have a variety of decisions to make. One of which is whether or not you want gap insurance coverage. A common question we hear at Tulley Mazda is, “How much is gap insurance and what does it cover?” The gap insurance cost varies based on several factors. You have the option to purchase gap insurance from your insurer or add it to your auto loan. Learn more about what affects the gap insurance price and the benefits of this optional coverage with Tulley Mazda.

Average Cost of Gap Insurance

The average cost of gap insurance varies based on where that coverage is purchased. Typically, drivers in the Merrimack area will have these options:

• Purchase from your current auto insurer: Generally, you can secure gap insurance for a low monthly payment from the same insurer who provides your comprehensive and collision insurance.

• Add gap insurance onto your car loan: You may also be able to add gap insurance coverage directly to your auto loan. In most cases, you’ll pay one flat fee for coverage, rather than making yearly payments.

• Purchase standalone gap insurance: Depending on your insurer, you may not be able to get gap insurance as part of your overall insurance plan. If this is the case, you can purchase this type of coverage on its own. This will also likely be a one-time fee.

Is the Gap Insurance Cost Worth it?

Gap insurance coverage is usually quite affordable for Lowell drivers, and it is a budget-friendly way to have peace of mind. Here are just a few of the reasons why the gap insurance price is worth it:

• If your vehicle is deemed a “total loss” after being damaged in a collision or stolen, you are covered by gap insurance.
• If you are involved in a collision and you owe more on your auto loan than the current value of the vehicle, gap insurance covers that difference.

Tulley Mazda Makes Car Shopping Stress-Free

If you have questions about the gap insurance cost for your vehicle, reach out to the finance department at Tulley Mazda. We would be more than happy to discuss your options. If you have any additional questions about insurance coverage, do not hesitate to ask. We want to make sure your vehicle is protected on the Nashua roads.