(800) 253-1482Do I Have to Buy Gap Insurance From the Dealer in Missouri?
Summary: You can purchase gap insurance through a dealership, or insurance carrier, and there are even gap waivers available. Furthermore, standalone policy options are also available, however, gap coverage through a dealer is often far more expensive and doesn't have as much flexibility in coverage. In most cases, dealerships in Missouri allow a 30-day cancellation where you can receive a full refund, though there still may be fees that apply. Furthermore, new judgments from the federal government allow military members to purchase gap coverage from dealers. If you want to save money on gap insurance, you're better off comparing carriers and dealerships, finding the best protection for your needs, and enrolling in the coverage available for the lowest cost. Estimated Read Time: 4 mins
Table of Contents:
- What Is Gap Insurance Through a Dealership in Missouri?
- How to Purchase Gap Insurance Through a Dealership in Missouri
- Should I Get Gap Insurance From a Dealer or Insurance Company in Missouri?
- How Much Is Gap Insurance Through a Dealership in Missouri?
- Why Is Active Military Denied Gap Insurance in Missouri?
- Can You Cancel Gap Insurance Through a Dealership in Missouri?
Gap insurance can be purchased from a car dealership or your auto insurance provider. While it’s typically optional when financing a car, some lenders may require it, and it may be mandatory when leasing a vehicle.
Dealerships often offer gap insurance during the purchase process, but this option is usually much more expensive in Missouri and may not offer the same level of protection.
Additionally, filing a claim through a dealership can be more complicated than with an auto insurer.
In some cases, lenders include a gap waiver in the loan or lease agreement, eliminating the need for separate coverage.
To avoid overpaying, compare prices and coverage details from both your dealership and your insurer before making a decision.
What Is Gap Insurance Through a Dealership in Missouri?
When purchasing a vehicle, understanding your gap insurance options can help you avoid overpaying and ensure adequate coverage.
Dealerships often offer gap insurance during car purchases, adding the cost to your loan, though this can be expensive due to the extra interest charges and limited flexibility in coverage.
You can decline this option and explore more affordable alternatives through carriers offering car insurance in Missouri.
Many auto insurers provide gap insurance as a low-cost add-on to existing policies, avoiding loan-related interest. Some even offer standalone policies for added protection.
Additionally, some lenders include gap waivers in car loans or leases, tying the coverage directly to the financing agreement.
Be sure to review the terms and limitations of any lender-provided waivers to ensure they meet your needs.
Comparing coverage from dealerships, insurers, and lenders helps secure the best protection at the lowest price.
Leased Vehicles
Gap insurance is often required for leased cars to protect against financial loss if the vehicle is totaled or stolen, but requirements vary by lease agreement.
Even if optional, it’s worth considering for drivers in Missouri, if you made a small down payment, have a long lease term, or are leasing a quickly depreciating luxury car.
Compare dealership-provided gap insurance with your auto insurer for potential savings.
If your loan balance is less than the car’s actual cash value (ACV), gap insurance might be unnecessary - check with your lessor before canceling or skipping coverage.
How to Purchase Gap Insurance Through a Dealership in Missouri
Dealers often offer gap insurance when you finance or lease a car, but it can be expensive if added to your loan due to interest rates.
Purchasing gap insurance from your auto insurer is typically more affordable and interest-free.
You can add the protection to a new or existing policy as long as your loan or lease isn't fully paid off, but remember, comprehensive and collision insurance is typically required to qualify for gap insurance.
Should I Get Gap Insurance From a Dealer or Insurance Company in Missouri?
For most drivers, it’s better to avoid buying gap insurance from a car dealership unless no other options work.
Purchasing gap coverage through a dealership typically costs $400-$700 plus loan interest, while auto insurers charge $20-$40 annually or around 6% of your collision and comprehensive premium.
If your insurer doesn’t offer gap insurance, standalone providers sell policies starting at a couple of hundred dollars.
Since gap coverage is usually needed for only a few years, dealership plans are often not worth the extra cost.
Below are the pros and cons of buying gap insurance from a dealer versus an auto insurer in Missouri:
Pros and Cons of Gap Insurance Through MO Dealers
How Much Is Gap Insurance Through a Dealership in Missouri?
Gap insurance in Missouri isn’t capped unlike some states, meaning, it can cost you thousands of dollars each year.
This is made even more expensive because gap insurance can be added to your auto loan when purchased through a dealership, meaning you’re going to pay interest on your coverage as well.
Seeing as some of the highest costs for gap insurance through carriers top out around $30 per month, it’s worth looking at all of your options before purchasing coverage.
Every driver’s insurance costs vary based on factors like coverage needs and driving history and keep in mind that you have 30 days to cancel your gap coverage waiver for a full refund in most cases.
Review your policy for details on cost, terms, claims process, and cancellation procedures to avoid surprises.
Why Is Active Military Denied Gap Insurance in Missouri?
Military members can buy gap insurance from dealerships, lenders, or insurance companies, and the ongoing debate in recent years has finally been clarified.
Confusion arose due to unclear rules under the Military Lending Act (MLA), which caps interest rates for active-duty service members
However, a federal judge’s decision would clarify that the MLA doesn’t include financing gap insurance.
Some lenders avoided offering gap insurance to military members to bypass potential restrictions. However, a federal decision allows gap insurance to be offered to service members.
Gap insurance remains widely available for military members despite past misunderstandings providing families stationed at Fort Leonard Wood, Whiteman AFB, and beyond have options.
Can You Cancel Gap Insurance Through a Dealership in Missouri?
Many dealers offer a 30-day cancellation period for gap insurance and will provide you with a full refund. However, after this period, you’ll still be responsible for any outstanding balances, including interest.
Again, always review your agreement and contact your dealer for your specific terms while also ensuring you have alternative coverage in place before canceling to avoid a lapse.
If you’re looking to cancel your gap insurance purchased through a dealership in Missouri, auto carriers can help you find personalized coverage, often for a lot less. Compare top-rated carriers near you using the tool below or ask an agent today:
