How much is gap insurance in Kansas

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Gap insurance costs $1,990 annually in Kansas, which is $93 more than the national average for gap insurance, according to an Insure.com rate analysis.

In Kansas, gap insurance policies are available from leading insurance companies such as Nationwide and Travelers.

Gap insurance serves as a financial safety net for drivers who finance or lease a car. It bridges the gap between the vehicle’s actual cash value and the outstanding balance owed on an auto loan or lease if the car is a total loss, such as after an accident or theft.

“Gap insurance may also be called loan/lease gap coverage,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute, an insurance industry trade group.

For most vehicles gap insurance is relatively affordable, but prices can vary widely from state to state and from city to city.

Read on to find out more about gap insurance, what it covers and how much you’re likely to pay.

What is gap insurance?

Gap insurance is an optional vehicle insurance coverage that helps pay off an auto loan or lease if your car is totaled or stolen and you owe more than the car’s depreciated value.

Most car buyers finance their vehicles, taking out a loan for the value of their new car. But it’s easy to forget that cars depreciate as soon as they’re driven off the lot. Often, car owners are driving vehicles that are worth less than what they owe their finance company.

If that car is totaled, the owner’s comprehensive or collision insurance reimbursement will be based on the vehicle’s actual cash value, not the owner’s loan balance. The owner is then responsible for the difference if the actual cash value is below the loan balance.

However, gap insurance can make up the difference.

“When an accident or theft occurs, a driver usually gets paid out on the vehicle’s cash value from their standard insurance coverage,” says Richard Howe, a car accident attorney in Atlanta. “However, without gap insurance, you will still be on the hook for the remaining amount in your agreement. Gap insurance provides peace of mind to drivers that they will be financially protected.

“For instance, let’s say your car is totaled and the actual cash value is determined to be $15,000. However, you still owe $20,000 on your loan. Traditional auto insurance would only cover up to the actual cash value – leaving you with a $5,000 deficit,” says Howe. “But if you have gap insurance, this difference would be covered, relieving you of the financial burden.”

Average cost of gap insurance in Kansas

What you pay for gap insurance will depend on your insurance carrier, the state you live in, the make and model of the car you insure and other factors.

The average cost of gap insurance in Kansas is $1,990 per year, or $166 per month.

“Gap insurance is an optional coverage that is usually very reasonably priced, typically less than $100 per year in additional premium when added as an endorsement to your existing auto insurance policy,” Friedlander says. “Gap insurance rates are based on the amount of your loan or lease agreement. It is typically not based on other common rating factors such as credit record.”

Cheapest gap insurance companies in Kansas

While the average rate for gap insurance in Kansas is $1,990 per year, lower rates are available.

In Kansas, the cheapest rate is from Nationwide at $1,363 annually or $114 monthly.

The highest rate is from Farmers, which charges $2,219 annually or $185 monthly.

The chart below looks at the average annual rates insurers are charging for gap insurance in the state.

Cheapest annual gap insurance rates in Kansas

How much is gap insurance per month in Kansas?

For a more granular look at typical monthly insurance costs, here’s a look at the cheapest monthly cost is for gap insurance in Kansas:

Cheapest monthly gap insurance rates in Kansas

How much does gap insurance cost in the top cities in Kansas?

The price tag of gap insurance may be higher or lower depending on the city you live in. Below is a look at the average annual costs for gap insurance broken down by major metro areas in Kansas.

Average gap insurance rates in Kansas’s biggest cities

Gap insurance rates for different vehicle types

The type of vehicle you drive can have a significant impact on your gap insurance rate.

“Luxury cars, sports cars, and SUVs – typically with higher purchase prices – might also come with higher gap insurance premiums. That’s because these vehicles tend to depreciate at different rates compared to standard sedans or compact cars, posing a greater risk to insurers,” Howe says.

The age of the insured vehicle also will play a critical role in calculating gap insurance rates.

“Newer vehicles, which depreciate more rapidly in the first few years, represent a higher risk for insurers offering gap coverage. As a result, a brand-new car might attract a higher gap insurance premium compared to a model that is several years old,” Howe says. “This reflects the insurer’s risk assessment, considering the steeper depreciation curve and the greater likelihood of a significant gap needing coverage soon after the purchase.”

How long does gap insurance last in Kansas?

Gap insurance is recommended as long as you have a loan or lease to cover the difference between what is owed and the depreciated value of your vehicle.

“The duration of gap insurance coverage can vary based on several factors, including where you purchase the policy, the terms of your financing or lease agreement, and the specific policies of your insurance provider,” Howe says. “However, gap insurance is typically most relevant during the first few years of new car ownership.”

This period represents the most significant gap between your loan balance and your vehicle’s depreciating cash value.

“Most car buyers benefit from gap insurance when the vehicle is less than three model years old. This coverage is usually aligned with the duration of the car loan or lease, often making it unnecessary beyond a few years because the loan balance decreases to fall below the car’s actual cash value,” Howe says.

You have the option to cancel gap coverage when you determine that it is no longer needed – that’s generally when the loan balance falls below the car’s actual cash value. Howe notes that some insurers also set terms for the automatic expiration of gap coverage after a certain number of years, recognizing that the automobile will eventually be worth more than the loan balance, rendering gap coverage unnecessary. 

Where to buy gap insurance in Kansas

Gap insurance coverage can be purchased in your state from various carriers, including national and regional insurers.

Car dealerships and auto loan lenders also offer gap insurance.

The bottom line

It pays to shop around and compare carriers and gap insurance quotes carefully in your state. You may end up paying less than expected based on your age, gender, type of vehicle and other factors.

Determine if gap insurance is right for you based on the age and value of your financed or leased car. When contacting carriers and agents, ask questions about anything you don’t understand.

Methodology

Insure.com commissioned Quadrant Information Services in 2023 to get annual and monthly gap insurance rates for male and female drivers aged 40 who drive a Honda Accord LX with a clean driving record and good insurance score and carry a full coverage car insurance policy with limits of 100/300/100 and $500 comprehensive/collision deductibles.

To evaluate the rates, we have compared 53,409,632 insurance records from 170 insurance companies across 29,152 cities and 34,588 ZIP codes across the nation.

Erik Martin

Contributing Researcher

 

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Erik J. Martin is a Chicago area-based freelance writer whose articles have been published by AARP The Magazine, The Motley Fool, The Costco Connection, USAA, US Chamber of Commerce, Bankrate, The Chicago Tribune, and other publications. He often writes on topics related to insurance, real estate, personal finance, business, technology, health care, and entertainment. Erik also hosts a podcast and publishes several blogs, including Martinspiration.com and Cineversegroup.com.