Montana gap insurance: Everything you need to know

How much is gap insurance in Montana?

On average, gap insurance in Montana costs $4,463 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 Montana

The cheapest company for gap insurance in Montana is Progressive, with an average annual cost of $2,665. Not all car insurance companies offer gap coverage, and rates vary significantly by company.

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

Company	Auto insurance rates with gap premium	Gap premium
Progressive	$2,665	$86
Kemper	$2,793	$61
Farmers	$7,931	$444

Read our methodology

Average gap insurance cost in Montana by city

Hardin is the most expensive to buy gap insurance with an average rate of $5,640, and Missoula is the cheapest with an average of $3,342. Where you live in Montana 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 Montana.

City	Auto insurance rates with gap premium	Gap premium
Missoula	$3,342	$130
Plains	$3,682	$153
Butte	$3,975	$165
Anaconda-Deer Lodge County	$4,127	$176
Belgrade	$4,192	$185
Billings	$4,661	$192
Kalispell	$4,706	$204
Flaxville	$4,837	$231
Geraldine	$5,467	$264
Hardin	$5,640	$271

Read our methodology

How much is gap insurance in Montana 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 $15,623 a year, and at 25 the average annual rate is $5,577.

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

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$15,623	$650
Young adult	$5,577	$238
Adult	$4,463	$197
Senior	$3,751	$159

Read our methodology

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.

You can drop gap coverage once your loan balance is below your car's value. While you can cancel gap insurance anytime, you may not be able to add it later. Most insurers require you to add gap coverage soon after buying a car.

Where to buy gap insurance in Montana

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

Insurance.com commissioned gap insurance rates from Quadrant Data Services in late 2023 at a variety of ages in all 50 states and Washington, D.C. Base rates use a 40-year-old driver with a 2023 Honda Accord LX. Rates were gathered from 138 insurance companies in 1,468 ZIP codes.

Montana gap insurance: FAQs

Is gap insurance required in Montana?

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

Who should buy gap insurance in Montana?

You may need gap insurance if you have a car loan or lease in Montana. Drivers who make a small down payment typically owe more than the vehicle is worth since cars depreciate faster than the loan is paid down, making gap insurance a good idea.

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 Montana?

Standalone gap insurance is a policy of its own, not connected with your car insurance. Gap insurance is available from your lender or a private company as a separate policy.

Does gap insurance cover leased cars in Montana?

Montana 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.