How much is gap insurance in Montana?
The average cost of gap insurance in Montana is $2,580 per year, but your rate will vary by insurer, vehicle value, and other factors. Fast-depreciating cars increase the gap between value and loan balance, making coverage more useful. The cost of the vehicle also matters, since luxury or high-cost cars often lose value faster, raising the potential difference after a total loss.
Cheapest gap insurance companies in Montana
The cheapest gap insurance in Montana is offered by Nationwide, with an average yearly cost of $2,301. 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 Montana insurance companies for gap coverage.
| Company | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Nationwide | $2,301 | $40 |
| Progressive | $2,860 | $85 |
Average gap insurance cost in Montana by city
Orchard Homes has the cheapest average gap insurance rate in Montana at $1,929 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.
If you live in an area with more theft, accidents, or costly claims, you 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 Montana.
| City | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Orchard Homes | $1,929 | $46 |
| Milltown | $1,938 | $47 |
| Missoula | $1,943 | $46 |
| Frenchtown | $2,004 | $49 |
| Lolo | $2,026 | $50 |
| Fort Harrison | $2,036 | $49 |
| Helena Valley West Central | $2,036 | $49 |
| Helena Valley Southeast | $2,051 | $50 |
| Huson | $2,056 | $51 |
| Helena | $2,068 | $51 |
How much is gap insurance in Montana by age group?
Gap insurance coverage for an 18-year-old driver costs $7,555 a year and costs $3,058 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 factor in your insurance cost. Your driving record, location, vehicle, insurer, and coverage choices also affect your price. Even drivers of the same age pay very different rates.
Here are the gap insurance rates in Montana for different age groups.
| Age group | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Teen | $7,555 | $158 |
| Young adult | $3,058 | $74 |
| Adult | $2,580 | $62 |
| Senior | $2,314 | $52 |
How does gap insurance work in Montana?
When you buy or lease a new car, it depreciates quickly, resulting in you owing more than it's worth. If your car is totaled, your insurance company will only pay its actual cash value, which might not cover your full loan balance. That's where gap insurance helps. If your car is totaled or stolen, gap insurance covers the difference between your car's value and what 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 Montana
You can buy gap insurance in Montana from auto insurers, lenders, dealerships, or standalone providers. You'll usually pay less when you add it to your auto insurance policy. Dealer and lender options often cost more, so compare prices, coverage limits, eligibility rules, and cancellation terms before you choose.
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.
Montana gap insurance: FAQs
Is gap insurance required in Montana?
No, Montana law does not require drivers to carry gap insurance. However, a lender or leasing company may require coverage under the terms of a loan or lease agreement.
Who should buy gap insurance in Montana?
You should buy gap insurance if you finance or lease a vehicle and may owe more than it is worth, which often happens with small down payments, long loan terms or fast-depreciating cars. It is also helpful if you roll taxes, fees, warranties or an existing loan into a new loan. You do not need it if you own the vehicle outright or already owe less than its value.
What is standalone gap insurance in Montana?
Standalone gap insurance in Montana 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 Montana?
Montana 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.
Compare Montana gap insurance rates with other states
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