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 $2,347 per year, with Safety Insurance offering the lowest rates.

Last updated: Dec 11, 2025

How much is gap insurance in Massachusetts?

On average, gap insurance in Massachusetts costs $2,347 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 Massachusetts

Safety Insurance offers the cheapest gap insurance coverage in Massachusetts at $1,797 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 Massachusetts.

Company	Auto insurance rates with gap premium	Gap premium
Safety Insurance	$1,797	$25
Progressive	$2,464	$66
Travelers	$2,780	$80

Read our methodology

Average gap insurance cost in Massachusetts by city

Chelsea is the most expensive to buy gap insurance with an average rate of $3,471, and Newburyport is the cheapest with an average of $1,775. Where you live in Massachusetts can affect your insurance rates. Auto insurance rates are higher in cities with more crime and theft since your vehicle is more likely to be damaged or stolen.

This table shows the average gap insurance rates by city for Massachusetts.

City	Auto insurance rates with gap premium	Gap premium
Newburyport	$1,775	$43
Andover	$1,930	$49
Leominster	$1,964	$48
Fitchburg	$2,050	$49
Beverly	$2,068	$47
Lowell	$2,327	$53
Boston	$2,556	$63
Springfield	$2,659	$63
Worcester	$2,673	$63
Chelsea	$3,471	$87

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 $6,878 per year, while a 25-year-old pays around $2,742 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	$6,878	$101
Young adult	$2,742	$65
Adult	$2,347	$57
Senior	$2,001	$46

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.

Once your loan is less than the value of your car, you can drop gap coverage. While you can always cancel gap insurance, you may be unable to add it anytime. Most insurers want you to add the coverage quickly after buying a car.

Additionally, many lenders require gap insurance when getting your loan. Although you can get gap coverage through your lender or car dealership, adding it to your current auto policy is usually cheaper.

Where to buy gap insurance in Massachusetts

Many insurance companies, including major carriers, offer gap insurance in Massachusetts. It's relatively easy to add coverage to your current auto insurance policy.

Adding gap coverage to your auto insurance policy is usually the most cost-effective option. While you can purchase gap coverage from most car dealers and lenders, those policies tend to be more expensive, making it a less attractive option.

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?

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

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 vehicle or make a large down payment so that you owe less than the car's value from the start of your loan.

What is standalone gap insurance in Massachusetts?

Standalone gap insurance is a separate policy, not part of your car insurance. You can buy it from your lender or a private company.

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.