McKayla Girardin, Car Insurance Writer
@mckayla_girardin
Gap insurance in New York costs an average of $2 to $30 per month, depending on whether you buy it from a dealership, a car manufacturer or your insurance provider. Gap insurance is only needed for one to three years, or until your vehicle is worth more than you still owe on your loan or lease.
Gap insurance covers the gap between a totaled vehicle’s actual cash value and the amount still owed on a loan or lease. However, it is important to note that the cost of gap insurance doesn’t vary much by state. Rather, the cost of gap insurance differs based on the provider it is purchased from and the vehicle being covered.
Cost of Gap Insurance by Provider
| Providers | Cost |
| Car Manufacturer | $200 to $700 total |
| Dealership or Lender | $200 to $700 total |
| Add-on to Existing Car Insurance Policy | $20 to $40 per year |
Although buying gap insurance directly from your insurance company is usually the cheapest option, not every insurer offers gap insurance in New York.
Insurance Companies That Offer Gap Insurance in New York
Gap insurance can be a useful thing to have for New York drivers who made a small loan down payment, have a lease, or drive a car that depreciates in value quickly, like luxury and sport vehicles. While gap insurance is never required by New York insurance laws, lenders and lessors often require it for financed vehicles.
To learn more, check out WalletHub’s guide to gap insurance.
People also ask
Is gap insurance worth it?
Gap insurance is worth the money whenever you owe more on your car loan or lease than the car is worth. For example, if you paid a small down payment on your car, your loan term is 4-5 years or your car will depreciate quickly, you should consider getting gap insurance.
Gap insurance is never mandated by state law, and few lenders or lessors require it, so the decision to buy it depends on...
read full answerWhat is full coverage insurance in New York?
Full coverage insurance in New York is usually defined as a policy that provides more than the state’s minimum liability coverage, which is $25,000 in bodily injury coverage per person, up to $50,000 per accident, and $10,000 in property damage coverage. Full coverage in New York also includes optional collision and comprehensive insurance. As a result, full coverage insurance costs an average of $4,535 per year in New York, while a state minimum policy costs $1,719 per year.
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read full answerDo I need gap insurance if I have full coverage?
Yes, you need gap insurance if you have full coverage and still owe money on a car loan or lease. Gap insurance is needed even if you have full coverage because full coverage does not cover the difference between what you owe on a loan/lease and the car’s actual cash value, like gap insurance does.
When You Need Gap Insurance If You Have Full Coverage
- You’re financing/leasing a new vehicle for a...
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