Best Cheap Gap Insurance Companies in Montana: Quotes, Discounts (2023)

Montana drivers who lease or finance a new vehicle should consider adding gap insurance to their overall coverage. Gap insurance can protect you financially if your car is stolen or you’re in a car accident and your vehicle is totaled.

Finding a policy is easy with Insurify. You can compare the best rates from multiple providers for car insurance policy quotes with and without gap insurance. Best part? It takes two minutes and it’s easy, free, and secure.

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Best Companies for Gap Insurance in Montana

In Montana, Travelers insurance company offers the lowest average monthly cost of gap insurance, at $130 per month. Also, Midvale and Nationwide are affordable choices, both providing gap insurance for less than $200 per month.

See More: Cheap Car Insurance in Montana

What is gap insurance?

Gap insurance isn’t like liability insurance that you get with a full-coverage policy. Instead, it’s an insurance product that protects you if your car is a total loss or stolen. It can pay off your vehicle loan (minus your deductible) if your auto insurance doesn’t cover the total amount of the loan. You see, vehicles depreciate over time, losing value every year.

An accident that totals your car can result in you owing more on the loan than the car is worth. But gap insurance fills the gap. “Gap” stands for “guaranteed asset protection.” It protects you from owing more money on your loan than you receive in a claim.

Typically, claims are paid on an "actual cash value" basis, meaning the insurance company gives you the vehicle's value the day it was totaled. If your car depreciated significantly, you may still owe thousands more than the claim paid you.

Who should buy gap insurance in Montana?

Gap insurance is a type of coverage for certain Montana drivers. It isn’t the right fit for you if you pay cash for a vehicle. If you buy a car using a sizable down payment, you likely won’t benefit from gap insurance coverage, either. Gap insurance can be helpful if you’re leasing a new car or financing one with an auto loan.

Consider gap insurance if:

• 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.

Montana Gap Insurance Laws

Montana laws mandate the purchase of car insurance. Drivers typically need minimum liability coverage for bodily injury and property damage liability. But the state’s insurance requirements don’t include gap insurance. On the other hand, some dealerships and banks may require the lessee or borrower to take out a gap insurance policy.

How much gap insurance do I need in Montana?

Although Montana residents do not have to buy gap insurance when purchasing a new car or lease, it makes sense in many situations—but you need to know how much coverage you need.

When you buy gap insurance, make sure the policy covers the total value of the loan or lease regardless of the vehicle's age. Otherwise, you could be on the hook to pay the difference between the outstanding loan balance and the insurance claim settlement.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Montana

Gap insurance is a type of insurance you can buy in addition to liability insurance, collision coverage, and comprehensive coverage. While collision and comprehensive can pay to repair your vehicle damage, gap insurance is coverage for the loan itself—it’s specific to a total loss of the car rather than repairable damage.

Suppose you lived in Missoula and had an accident that totaled your new car. In this scenario, your loan balance at the time of the accident might have been $20,000, but your vehicle may be worth only $15,000. Your auto insurance company covers the value of that car, not the loan balance. But gap coverage will pay the difference.

How Much Gap Insurance Costs in Montana

Car insurance that includes gap insurance in Montana costs an average of $348 per month. The average cost in the U.S. is $289, so Montana drivers pay nearly $60 per month more than the average American.

Of course, the actual amount you pay will be relative to the price of your new car lease or purchase. The more expensive the car, the more the insurance can cost. But unlike a typical auto insurance policy, gap insurance doesn’t use your driving record to calculate your premiums.

See More: Average Cost of Car Insurance in Montana

How to Buy Gap Insurance in Montana

Buying gap insurance in Montana is as easy as asking for it. If you are working with a dealer or lender, they may offer it as an agreement option. But remember that gap insurance is an extra cost—it doesn’t come standard with an auto loan or lease.

However, you can also buy gap insurance through Montana car insurance providers or your insurance agent. You may even pay less when you buy it through an insurer rather than the dealership or lender. It’s convenient because you can bundle it with your existing policy.

To get a jump-start, use Insurify to compare quotes for gap insurance. Answer a few questions about your car and driving history, and Insurify will do all the shopping around for you, even getting you quotes from top insurance companies like Allstate, Progressive, and GEICO.

Frequently Asked Questions: Gap Insurance in Montana