Missouri gap insurance: Everything you need to know

How much is gap insurance in Missouri?

In Missouri, gap insurance costs an average of $5,004 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 Missouri

The cheapest gap insurance in Missouri is offered by Travelers, with an average yearly cost of $1,735. 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 Missouri insurance companies for gap coverage.

Company	Auto insurance rates with gap premium	Gap premium
Travelers	$1,735	$48
Auto Club Enterprises (AAA)	$3,701	$141
Progressive	$3,736	$91
Farmers	$10,844	$535

Read our methodology

Average gap insurance cost in Missouri by city

Gap insurance costs the most in St. Louis, with an average rate of $6,331, while Holts Summit has the lowest rate at $2,839. Where you live in Missouri 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 Missouri

City	Auto insurance rates with gap premium	Gap premium
Holts Summit	$2,839	$115
St. Joseph	$2,993	$115
Kansas City	$3,252	$125
Clifton Hill	$3,264	$147
New Franklin	$3,289	$150
Blue Springs	$3,292	$125
Springfield	$3,403	$131
West Plains	$3,526	$154
Farmington	$3,533	$158
Mountain View	$3,542	$155

Read our methodology

How much is gap insurance in Missouri by age group?

Car insurance rates for younger drivers are more expensive because they are more likely to engage in risky driving and lack the experience needed to avoid accidents. Rates go down as the driver gets older. For example, at 18 years old the average rate is $17,061 a year, and at 25 the average annual rate is $5,861.

The table below shows the average gap insurance rates in Missouri by age.

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$17,061	$714
Young adult	$5,861	$241
Adult	$5,004	$204
Senior	$3,912	$152

Read our methodology

How does gap insurance work in Missouri?

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, 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 Missouri

Many insurance companies, including major providers, offer gap insurance in Missouri. 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.

Missouri gap insurance: FAQs

Is gap insurance required in Missouri?

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

Who should buy gap insurance in Missouri?

You may need gap insurance in Missouri if you lease or finance a car with a small down payment. Since cars lose value faster than loans are paid off, gap insurance can protect you from owing more than your car is worth.

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 Missouri?

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 Missouri?

Missouri 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.