Mississippi gap insurance: Everything you need to know

How much is gap insurance in Mississippi?

In Mississippi, gap insurance costs an average of $2,151 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 Mississippi

The cheapest company for gap insurance in Mississippi is Nationwide, with an average annual cost of $1,406. Not all car insurance companies offer gap coverage, and rates vary significantly by company.

Check out the table below to find the cheapest Mississippi insurance companies for gap coverage.

Company	Auto insurance rates with gap premium	Gap premium
Nationwide	$1,406	$36
Travelers	$1,725	$47
Progressive	$1,984	$101
Shelter Insurance	$2,567	$101
Farmers	$3,073	$150

Read our methodology

Average gap insurance cost in Mississippi by city

Natchez is the most expensive to buy gap insurance with an average rate of $2,368, and Columbus is the cheapest with an average of $1,914. Where you live in Mississippi 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 Mississippi.

City	Auto insurance rates with gap premium	Gap premium
Columbus	$1,914	$78
Ecru	$2,014	$81
Olive Branch	$2,063	$74
Carthage	$2,108	$88
Calhoun City	$2,116	$94
Moss Point	$2,210	$91
Clinton	$2,212	$87
Gulfport	$2,253	$90
Natchez	$2,368	$96

Read our methodology

How much is gap insurance in Mississippi 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 $7,883 per year, while a 25-year-old pays around $2,735 annually.

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

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$7,883	$311
Young adult	$2,735	$112
Adult	$2,151	$87
Senior	$1,857	$71

Read our methodology

How does gap insurance work in Mississippi?

When you buy or lease a new car, depreciationDepreciation is the decrease in your car's value over time due to wear and tear, age and mileage. Depreciation is used to determine the actual cash value of a vehicle in the event of a total loss. can quickly cause you to owe more than the car is worth. If your car is totaled, the insurance company will only pay out the car's actual cash value, which may leave you owing on the loan. That's where gap insurance comes in. If your vehicle is totaled or stolen, gap insurance covers the difference between your car's value and the loan payoff.

"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, imagine you have a $40,000 car loan, but your vehicle's actual cash value is only $35,000. If someone steals your car, your insurance company reimburses 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 pays the remaining $5,000 you still owe on the loan. Without gap insurance, you must cover this difference out of pocket.

Once your loan balance is lower than your car's value, you can drop gap coverage. You can cancel gap insurance anytime, but you may not be able to add it whenever you want. Most insurers require you to add the coverage soon after you buy a car.

Many lenders also require gap insurance when you take out a loan. You can buy gap coverage from your lender or car dealership, but adding it to your existing auto policy usually costs less.

Where to buy gap insurance in Mississippi

Many insurance companies, including major carriers, offer gap insurance in Mississippi. 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.

Mississippi gap insurance: FAQs

Is gap insurance required in Mississippi?

Gap insurance isn't required by law in Mississippi, but your lender may require you to have the coverage.

Who should buy gap insurance in Mississippi?

If you have a car loan or lease in Mississippi, 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 make a large down payment.

What is standalone gap insurance in Mississippi?

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

Does gap insurance cover leased cars in Mississippi?

Mississippi gap insurance covers leased cars when the driver owes more than the vehicle's current market value. You can drop gap coverage once your car is worth more than what is owed.