Buying gap insurance from a dealership is generally if you have the option to purchase it through your regular auto insurance provider. While convenient, dealership-sold gap coverage is significantly more expensive and less flexible than the alternatives. Cost Comparison Typical Cost Payment Method Auto Insurance Co. $20–$100 per year Monthly/yearly premium add-on Credit Union/Lender $200–$700 flat fee One-time fee or financed Car Dealership $400–$1,000+ flat fee Financed into the car loan How Much Is Gap Insurance?