The average cost of gap insurance typically ranges from $20 to $40 per year. This cost can vary based on factors such as the vehicle’s value, the insurance provider, and the policyholder’s driving history. Generally, gap insurance is an affordable addition to your regular auto insurance policy, offering valuable protection by covering the difference between the vehicle’s actual cash value and the remaining balance on your loan or lease in the event of a total loss. While it may seem like a small expense, its benefits can be significant, especially for new or high-value vehicles. It’s always a good idea to compare quotes from different providers to find the best rate for your specific situation.