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Best Cheap Gap Insurance Companies in Michigan: Quotes, Discounts (2022)

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Janet Hunt

By: Janet Hunt

Edited by Jackie Cohen | Reviewed by licensed insurance agent, Amber Benka

Last Updated June 15, 2022

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

Buying a new car is exciting, but you shouldn’t forget to consider the different types of car insurance you’ll need. Several factors determine what auto insurance you should buy, including where you live, the car’s make and model, and how much coverage you want. One type of insurance you’ll likely hear about while at the dealership is gap insurance.

Michigan drivers want the best protection possible but don’t want to overpay for an auto insurance policy. You won’t have to worry about overpaying for insurance if you use Insurify to compare car insurance prices. You can compare quotes side by side, and it’s quick, easy, and free!

See More: Compare Car Insurance

Best Companies for Gap Insurance in Michigan

How much is gap insurance in Michigan?

The average cost for a car insurance policy with a gap insurance add-on in Michigan is $495 per month. Michigan is the most expensive state in the nation when it comes to insurance premiums.

If you think gap insurance may be a good idea for you, you will be interested to know which insurance providers give you a good deal on car insurance. We’ve listed the auto insurance rates by company to help in your search for the right car insurance.

Insurance CompanyAverage Monthly Cost for Leased Cars in Michigan
Safeco$218
TSC$230
Liberty Mutual$374
Midvale$508
Arrowhead$612
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

What is gap insurance?

Gap insurance stands for guaranteed asset protection. For example, if you owe more for a car than it is worth and total your car, gap insurance will pay your lender the difference between what the insurance company will pay out and how much you still owe. Some bank or credit union lenders require gap coverage as part of the finance agreement.

If you had gap insurance, it would step in and cover the difference between what you owe and what your car is worth so you don’t have to keep paying down a loan for a destroyed car. Gap insurance is also sometimes called loan assistance coverage or lease assistance coverage, but they all refer to the same thing.

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Who should buy gap insurance in Michigan?

Unless you drive an antique or collectible car, your vehicle will depreciate over time. If you aren’t making payments on your vehicle, then you won’t need to purchase gap insurance. If you did finance your vehicle, then gap insurance coverage can help in the following situations.

  • Your lender requires it.
  • You’re leasing your vehicle.
  • You financed your vehicle loan over 60 months or more.
  • You put less than 20 percent down on your car (or didn’t make a down payment at all).
  • Your loan has a high interest rate.
  • You rolled over negative equity from your last auto loan.
  • You’re driving a luxury vehicle or other high-value vehicle that depreciates faster than a standard car.

Michigan Gap Insurance Laws

If you live in Michigan, the law does not require you to carry gap insurance coverage, nor do you have to carry comprehensive or collision coverage. You are only required to have liability insurance: $50,000 for bodily injury per person, $100,000 for bodily injury per accident, and $10,000 for property damage per accident. Your lender may still require gap coverage.

How much gap insurance do I need in Michigan?

Michigan residents only need to purchase the amount of gap insurance required to cover the difference between the value of your car and the loan balance on the vehicle. The cost of gap insurance will be added to your vehicle loan payments if you purchase it when you buy your car.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Michigan

Gap insurance in Michigan works much the same as in any other state. When buying a new car, your salesman or the dealership’s finance director will review the purchase agreement. You will likely be offered the option to purchase gap insurance and perhaps some other additional coverage options, like roadside assistance, life insurance, or extended warranty coverage.

If you have a wreck and total your vehicle, gap insurance finishes paying the lender off after the auto insurance company has paid its part of the claim (your vehicle’s actual cash value).

How Much Gap Insurance Costs in Michigan

The average cost for car insurance that includes gap insurance in Michigan is $495 per month. In the cheapest states, gap insurance coverage costs around $122 per month. Unfortunately for Michiganders, the Great Lake State is the most expensive in the country for car insurance.

See More: Average Cost of Car Insurance in Michigan

How to Buy Gap Insurance in Michigan

You can buy gap insurance in Michigan in a few different ways. First, you can add it to your existing auto policy or purchase it through your auto dealership. These routes can be costly and frustrating.

That’s where Insurify comes in. Compare quotes from different auto insurance companies to get the best deal for the best coverage. When you compare, you can have peace of mind knowing you’ve secured your desired coverage levels for the cheapest price.

Frequently Asked Questions: Gap Insurance in Michigan

  • Michigan law does not require gap insurance. However, if you finance your vehicle, the lender may require gap coverage.

  • It’s possible for you to receive a reimbursement for any unearned premium after paying your car loan in full. This only applies when you pay for gap insurance up front.

  • Michigan gap insurance is available at the dealership when buying your car or through adding it to an existing auto policy. Michigan car owners should use Insurify for auto insurance comparison-shopping for the best deal on gap insurance.

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  • The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

    Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

    With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Janet Hunt
Janet Hunt

Insurance Writer

Janet Hunt received her B.S. in Business Administration with the University of Phoenix. She has worked in the insurance industry for over 20 years. Janet likes to spend her spare time coming up with gourmet recipes and trying them out on her guests. So far, all have survived.

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