Massachusetts gap insurance: Everything you need to know

Gap insurance covers the difference between your car’s value and the amount you still owe if it’s totaled or stolen. It’s not required by law in Massachusetts, but many lenders and leasing companies require it. In Massachusetts, gap insurance costs an average of $2,563 per year, with Progressive offering the lowest rates.

Last updated: Mar 2, 2026

How much is gap insurance in Massachusetts?

In Massachusetts, gap insurance costs an average of $2,563 per year, but prices vary by company. Your car's value also affects the cost of gap insurance. Expensive or luxury cars depreciate faster than standard vehicles, so gap coverage may have to pay more, leading to higher rates.

Cheapest gap insurance companies in Massachusetts

The cheapest gap insurance in Massachusetts is offered by Progressive, with an average yearly cost of $2,257. Not all car insurance companies provide gap coverage, and rates can vary significantly among carriers.

Take a look at the table below to see the cheapest Massachusetts insurance companies for gap coverage.

Company	Auto insurance rates with gap premium	Gap premium
Progressive	$2,257	$57
Safety Insurance	$2,477	$15
Travelers	$2,955	$81

Read our methodology

Average gap insurance cost in Massachusetts by city

Gap insurance costs the lowest in East Orleans at $1,960. Where you live in Massachusetts 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 Massachusetts

City	Auto insurance rates with gap premium	Gap premium
East Orleans	$1,960	$39
Orleans	$1,960	$39
Chatham	$1,970	$39
North Chatham	$1,970	$39
South Chatham	$1,970	$39
Gill	$1,982	$39
Northfield	$1,992	$40
Deerfield	$1,999	$39
South Deerfield	$1,999	$39
Erving	$2,015	$40

Read our methodology

How much is gap insurance in Massachusetts 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 $7,518 per year, while a 25-year-old pays around $2,975 annually.

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

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$7,518	$98
Young adult	$2,975	$59
Adult	$2,563	$51
Senior	$2,086	$39

Read our methodology

How does gap insurance work in Massachusetts?

Right after you buy or lease a new car, it depreciates, causing you to owe more than the car is worth. If your car gets totaled, your insurance company pays only the car's actual cash value. This payout may leave you still owing money on the loan. That's where gap insurance helps. If someone totals or steals your car, gap insurance pays the difference between your car's value and the amount 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 Massachusetts

Many insurance companies, including major providers, offer gap insurance in Massachusetts. You can add this coverage to your existing car insurance policy or buy a standalone policy.

The best way to get gap coverage is to add it to your auto insurance policy. Car dealers and lenders also offer gap insurance, but their policies are mostly expensive, making them less budget-friendly.

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.

Massachusetts gap insurance: FAQs

Is gap insurance required in Massachusetts?

Massachusetts law doesn't require gap insurance, but your lender may require it.

Who should buy gap insurance in Massachusetts?

If you have a car loan or lease in Massachusetts, you might need gap insurance. If you made a small down payment, you could quickly owe more than your car is worth since vehicles lose value faster than you can pay the loan. In this case, gap insurance can be a smart choice.

You don't need gap insurance if you own your car or made a large down payment to ensure that you owe less than the car's value at the start of your loan.

What is standalone gap insurance in Massachusetts?

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 Massachusetts?

Massachusetts 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.