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Updated June 15, 2022
Many people think full coverage will pay for a new vehicle if you suffer a total loss from a car accident or theft. However, the collision coverage portion of your full coverage will only pay for the amount your car is actually worth, not the full amount you owe on it.
Gap insurance steps in where your auto insurance falls short. Find the gap insurance coverage you need with Insurify, which delivers instant quotes from top insurers to make the comparison process easy.
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Best Companies for Gap Insurance in Mississippi
How much is gap insurance in Mississippi?
You can find gap insurance in Mississippi for as little as $5 per month, or $60 annually. However, as is the case with any auto insurance policy, rates will vary based on your driving record, your age, your credit score, and other factors in your unique driving profile
It’s possible to find affordable coverage that includes gap insurance in Mississippi, no matter if your driving record includes a DUI or other issues. Here are the top five cheapest quotes we found in Mississippi for coverage on a leased car that includes gap insurance.
|Insurance Company||Average Monthly Cost for Leased Cars in Mississippi|
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What is gap insurance?
GAP is an acronym that stands for “guaranteed asset protection,” but in another sense, it does fill an important gap left by your insurance policy. Gap insurance pays the difference between the amount you owe on your car loan and the amount your car is actually worth, according to your insurance company.
Say your car is stolen or destroyed in an accident, and you still owe quite a bit of money on it. Your insurance pays the actual cash value (ACV) that your car is worth, factoring in depreciation.
Your car starts depreciating as soon as you drive it off the dealership lot, so your insurance payout may not cover the full amount you owe. That means you could be stuck making payments on a car you don’t even own anymore—not to mention payments on a new loan that you’ll need to get to buy another motor vehicle after major property damage on your previous one.
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 Mississippi?
Some Mississippi lenders require you to buy gap insurance. You should check with your lender to see if you’re required to have this on top of your Mississippi car insurance.
It’s also a good idea if you’re leasing your vehicle. Lease gap insurance is available for motorists who lease their vehicles; it’s like a traditional gap insurance policy, except it pays the difference between what your lease agreement says you owe and the value of the vehicle.
Other people who should consider supplementing auto insurance coverage with gap insurance include:
Anyone who financed their vehicle for five years or more.
People who put less than 20 percent down on their car, especially people who didn’t make a down payment at all.
Drivers whose car loan has a high interest rate.
People who rolled over negative equity from their last auto loan (something gap insurance can help prevent in the future).
Anyone with a luxury or other high-value vehicle because they depreciate faster than other vehicles.
Mississippi Gap Insurance Laws
Insurance requirements in the state of Mississippi do not require anyone to carry gap insurance as part of their car insurance coverage. And, as of 2018, a state law makes gap waivers a risk-free purchase by requiring all gap insurance agreements to have a 30-day free look period, plus a full refund if you change your mind.
How much gap insurance do I need in Mississippi?
Your gap insurance should fully cover the amount you still owe toward your car loan. When you shop around for cheap car insurance that comes with gap coverage, you should make sure that the maximum benefits are at least as much as the balance on your loan. That way you know you’ll be fully protected if the worst happens.
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How Gap Insurance Works in Mississippi
Gap insurance kicks in when your vehicle is declared a total loss, either because it was stolen or because it was totaled in an accident. This is where your collision coverage and other portions of your car insurance usually leave a gap.
You only need to buy it if you’re leasing a car or if you owe more on the loan than the car is currently worth. You don’t need gap insurance if you don’t have a lease or a loan balance to worry about.
Gap insurance only covers the balance you owe on your loan. There are a few things it never covers, including:
Any amounts rolled into your loan, like penalties, fees, or rollover balances from previous loans.
Expenses you incurred as a result of your accident, such as medical payments for bodily injury.
Late fees and payment balances from falling behind.
Car rentals when you’re left without a car after an accident (though other portions of your coverage should pay for this).
A down payment on a new car.
How Much Gap Insurance Costs in Mississippi
The cost of gap insurance can vary a lot in Mississippi, just like regular auto insurance rates. Insurance providers charge different rates, with many Mississippi auto insurance providers charging as little as $5 a month, or $60 a year. If your insurance company doesn’t offer gap insurance, you can also get it from a stand-alone third-party company.
The cheapest option is usually buying your gap insurance from the same company where you get your car insurance policy. Mississippi car insurance companies charge an average of $251 a month for a standard insurance policy with gap insurance included.
How to Buy Gap Insurance in Mississippi
The best option for Mississippi drivers is to compare car insurance quotes and policies. This will ensure you’ve found the best deal on gap insurance that meets all your requirements. Use Insurify to find a good deal on car insurance that has all the features you need, from a low deductible to roadside assistance to good liability coverage and, yes, gap insurance.
You may be able to get cheaper car insurance that includes gap coverage if you fit a certain profile, including a clean driving history and a good credit score. You can also save money on your car insurance if you bundle it with other types of insurance, like homeowners or renters insurance. Both of these strategies can help offset the extra cost of gap insurance.
Frequently Asked Questions: Gap Insurance in Mississippi
Mississippi law does not require gap insurance. However, simply carrying the minimum coverage possible can really come back to bite you if you suffer a total loss while you’re still paying off your car loan.
You can often cancel your gap insurance policy either after you’ve paid off your car or after the value of your car is more than you owe on it, then receive a refund of any unused premium. Check the fine print before buying to make sure this is possible.
Shop around with an online comparison tool like Insurify. It’s the easiest way to get cheap gap insurance in Mississippi because it brings you quotes from the top insurance companies. This way, you can find the gap policy that meets your needs without a lot of hassle.
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Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.