Maine gap insurance: Everything you need to know

How much is gap insurance in Maine?

On average, gap insurance in Maine costs $1,602 a year, but rates vary by company. The cost of your vehicle also affects gap rates. Expensive or luxurious cars tend to depreciate faster than standard vehicles, meaning gap coverage would have to pay more, which increases coverage rates.

Cheapest gap insurance companies in Maine

Travelers offers the cheapest gap insurance coverage in Maine at $835 annually. Not all car insurance companies provide gap coverage, and rates differ widely by company.

See the table below to find the cheapest insurance companies for gap coverage in Maine.

Company	Auto insurance rates with gap premium	Gap premium
Travelers	$835	$22
Auto-Owners	$853	$35
Progressive	$1,078	$29
Frankenmuth Insurance	$1,503	$101
Farmers	$2,671	$68

Read our methodology

Average gap insurance cost in Maine by city

Gap insurance costs the most in Lewiston, with an average rate of $1,724, while Caribou has the lowest rate at $1,499. Where you live in Maine can impact your insurance costs. Cities with higher crime and theft rates have higher auto insurance rates since the risk of damage or theft is higher.

Here are the average gap insurance rates by city in Maine

City	Auto insurance rates with gap premium	Gap premium
Caribou	$1,499	$57
Bowdoinham	$1,536	$55
Gorham	$1,558	$48
Bangor	$1,570	$54
Holden	$1,608	$61
Augusta	$1,608	$54
Cliff Island	$1,612	$51
Farmingdale	$1,612	$57
Auburn	$1,692	$50
Lewiston	$1,724	$52

Read our methodology

How much is gap insurance in Maine by age group?

Gap insurance rates are higher for younger drivers because they have less experience and are more likely to take risks while driving, increasing the odds of a total loss. As drivers get older, their rates go down. For example, an 18-year-old pays an average of $4,780 per year, while a 25-year-old pays around $2,042 annually.

The table below lists the average gap insurance rates in Maine based on age.

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$4,780	$180
Young adult	$2,042	$68
Adult	$1,602	$54
Senior	$1,501	$49

Read our methodology

How does gap insurance work in Maine?

When you buy or lease a new car, it depreciates quickly resulting in you owing more than it's worth. If your car is totaled, your insurance company will only pay its actual cash value, which might not cover your full loan balance. That's where gap insurance helps. If your car is totaled or stolen, gap insurance covers the difference between your car's value and what you still owe on the loan.

"Gap is designed for people that take long-term loans and/or roll taxes, service plans, or warranties into their loan," said Zack Pope, agency manager at David Pope Insurance in Missouri. "Most gap coverages only go a certain percent over market value to pay off a loan for a totaled vehicle (typically 25%). It costs significantly less money to get gap through your insurance than to purchase it from the dealership."

For example, let's say you have a $40,000 car loan, but your vehicle's actual cash value is only $35,000. If the car is stolen, your insurance company will reimburse you $35,000, minus your deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim.. Gap insurance would cover the remaining $5,000 that you still owe on your loan. Without gap insurance, you'd be responsible for paying this difference out of pocket.

You can drop gap coverage once your loan balance is below your car's value. While you can cancel gap insurance anytime, you may not be able to add it later. Most insurers require you to add gap coverage soon after buying a car.

Where to buy gap insurance in Maine

Many insurance companies, including major carriers, offer gap insurance in Maine. You can easily add this coverage to your existing auto insurance policy or buy a standalone policy.

Adding gap coverage to your car insurance policy usually costs less. You can also buy gap coverage from most car dealers and lenders, but their policies are often more expensive, making them a less appealing choice.

Methodology

We gathered car insurance rates with and without gap insurance through our data partner, Quadrant Information Services.

Averages are annual and based on our full coverage data set. This data set is based on:

Bodily injury liability of $100,000 per person and $300,000 per incident
Property damage liability of $100,000 per incident
Comprehensive and collision deductibles of $500
40-year-old driver
Honda Accord LX
Good credit
A clean driving record
12-mile commute, 10,000 annual mileage

To show the cost of gap insurance, we have compared rates with gap insurance added to the averages without gap insurance, and the difference is shown as the annual cost of gap insurance.

Rates are based on an analysis of over 5 million data points in all 50 states and Washington, D.C. from 138 companies.

Maine gap insurance: FAQs

Is gap insurance required in Maine?

Gap insurance isn't required by Maine law. However, your lender may require the coverage.

Who should buy gap insurance in Maine?

You may need gap insurance if you have a car loan or lease in Maine. Drivers who make a small down payment typically owe more than the vehicle is worth since cars depreciate faster than the loan is paid down, making gap insurance a good idea.

You don't need gap insurance if you own your car or make a large down payment.

What is standalone gap insurance in Maine?

Standalone gap insurance is a policy of its own, not connected with your car insurance. Gap insurance is available from your lender or a private company as a separate policy.

Does gap insurance cover leased cars in Maine?

Maine gap insurance covers leased cars where the driver owes more than the vehicle's current market value. Over time, you may remove gap coverage once your vehicle is worth more than what is owed.