Mississippi gap insurance: Everything you need to know

How much is gap insurance in Mississippi?

Gap insurance in Mississippi costs an average of $2,389 per year. Your price will vary by insurer, vehicle value, and other rating factors. Vehicles that lose value quickly create a larger difference between the loan balance and actual cash value, making gap coverage especially useful for those drivers. The cost of your vehicle can also affect gap insurance rates. Expensive or luxury vehicles may depreciate quickly, which can increase the amount of insurance required to cover a total loss.

Cheapest gap insurance companies in Mississippi

Travelers offers the cheapest gap insurance in Mississippi, with an average annual rate of $1,827. Gap coverage is not available from every auto insurance company, and prices differ considerably among insurers. Comparing companies can help you find affordable coverage that fits your needs.

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

Company	Auto insurance rates with gap premium	Gap premium
Travelers	$1,827	$48
Nationwide	$2,222	$56
Shelter Insurance	$2,238	$91
Progressive	$2,615	$70
Southern Farm Bureau	$3,044	$125

Read our methodology

Average gap insurance cost in Mississippi by city

Mantachie has the cheapest average gap insurance rate in Mississippi at $1,991 per year. Rates vary by city because insurers consider local claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. patterns, theft, traffic, repair costs and other location-based risks when pricing auto insurance. Your individual rate will differ from the city average.

Drivers in areas with more theft, accidents or costly claims may pay higher overall auto insurance rates. Because gap coverage is often added to an auto policy, these local pricing differences can affect the total cost of coverage.

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

City	Auto insurance rates with gap premium	Gap premium
Mantachie	$1,991	$65
Guntown	$1,998	$65
Blue Springs	$2,001	$65
Saltillo	$2,010	$66
Mooreville	$2,016	$66
Fulton	$2,031	$67
Baldwyn	$2,039	$66
Marietta	$2,039	$66
Tupelo	$2,040	$67
Verona	$2,042	$67

Read our methodology

How much is gap insurance in Mississippi by age group?

Gap insurance coverage for an 18-year-old driver costs $7,771 a year and costs $3,023 annually for a 25-year-old driver. Car insurance costs more for younger drivers because they are more likely to take risks and have less experience avoiding accidents. However, rates decrease as drivers get older.

Age is just one of several factors that influence insurance costs. What you pay will also vary based on your location, vehicle, driving record, coverage selections, and the insurance company you choose.

Here are the gap insurance rates in Mississippi for different age groups.

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$7,771	$219
Young adult	$3,023	$99
Adult	$2,389	$78
Senior	$2,057	$63

Read our methodology

How does gap insurance work in Mississippi?

Gap insurance in Mississippi covers the difference between your vehicle's actual cash value and the remaining loan or lease balance after a covered total loss. It is most useful when you owe more than the vehicle is worth, so you don't have to pay the shortfall out of pocket.

New vehicles lose value faster than some drivers pay down their loans. If your financed or leased car is totaled or stolen, your standard auto insurance pays the vehicle's actual cash value rather than the amount remaining on your 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 Mississippi

Gap insurance in Mississippi can be purchased from many insurers, dealerships, lenders, or standalone providers. Adding it to an existing auto policy is usually the cheapest option, while dealer or lender coverage often costs more. Price, coverage limits, cancellation terms, and eligibility should always be compared before selecting a policy.

Gap coverage is also available 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.

Mississippi gap insurance: FAQs

Is gap insurance required in Mississippi?

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

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 off 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 Mississippi?

Standalone gap insurance in Mississippi is coverage you buy separately from your auto policy, usually through a lender, dealership, or third-party provider. You may use it if your insurer doesn't offer gap coverage. Always compare what it covers, payout limits, and terms before you buy.

Does gap insurance cover leased cars in Mississippi?

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