Missouri Insurance Gap: What's The Deal?

Missouri does not require drivers to carry gap insurance. However, it is mandatory for all motor vehicle drivers and owners in the state to maintain some form of motor vehicle liability insurance coverage. This coverage must include bodily injury liability of at least $25,000 per person and $50,000 per accident, as well as property damage liability coverage of $25,000 per accident. Missouri law also requires drivers to have uninsured motorist coverage of $25,000 for bodily injury per person and $50,000 per accident.

Gap insurance, or guaranteed asset protection insurance, covers the difference between what is owed on a car and its worth if the vehicle is declared a total loss. While not mandatory, certain lenders in Missouri may require gap insurance if you get a car loan or lease.

Missouri's minimum insurance requirements

Missouri state law requires all motor vehicle drivers and owners to maintain some type of motor vehicle liability insurance coverage. The minimum level of coverage required by state law is:

• $25,000 per person for bodily injury
• $50,000 per accident for bodily injury
• $25,000 per accident for property damage

The law also requires you to have uninsured motorist coverage of $25,000 for bodily injury per person and $50,000 for bodily injury per accident. Missouri does not require you to carry additional coverage such as personal liability insurance or Collision and Comprehensive. However, if you own property or other valuable assets, supplementing the minimum requirements can help protect yourself from monetary loss.

Missouri residents are required to show proof of insurance when registering a motor vehicle or renewing their license plates. All motor vehicle owners must also keep proof of insurance in their vehicles at all times. Failure to do so can result in severe penalties that may include monetary fines and jail time. A first offense can carry a fine of $300, your driver's license can be suspended, and you can be jailed for up to 15 days. In Missouri, a ticket for No Insurance stays on your driving record forever.

If you are involved in an accident without car insurance, you and the other driver must file an accident report within one year, and your license can be suspended, whether the accident was your fault or not. If it was your fault, your license will be suspended, and you will not be able to get it reinstated until you can show proof that you have paid all damages to the other driver.

GAP insurance

Guaranteed Asset Protection (GAP) insurance is not required by law in Missouri. However, it is an essential form of coverage for drivers who want to protect themselves financially in the event of an accident. GAP insurance covers the difference between what you owe on your vehicle and its actual cash value if it is deemed a total loss. This can occur when the cost to repair your car is higher than its actual cash value.

For example, if you owe $15,000 on a car loan and your car is totalled in an accident, your insurance company may determine that your car's actual cash value is only $10,000. In this case, GAP insurance would pay the $5,000 difference so that you are not left with a shortfall.

When purchasing GAP insurance in Missouri, you can choose to buy it from a dealership or your insurance agent. It is worth noting that GAP coverage is usually cheaper to purchase from an insurance company than a dealership. Additionally, when buying from an insurance agent, it is added as an endorsement to your current auto policy rather than a separate policy. To be eligible for GAP coverage, you will need to have comprehensive and collision coverage on your vehicle.

In Missouri, the decision to purchase GAP insurance depends on your individual circumstances and the value of your vehicle. It is recommended to speak with a personal financial officer or insurance agent to determine if GAP insurance is right for you.

Penalties for driving without insurance

It is illegal to drive without insurance in Missouri, and drivers must be able to show proof of insurance to law enforcement officials when requested. If you are unable to do so, you will be issued a ticket.

If convicted of "failing to show proof of insurance", one of three things will happen:

• The court will notify the Missouri Department of Revenue, and the conviction will be entered on your driving record, with four points added. Accumulating eight points within an 18-month period will result in losing your driving privileges in Missouri.
• The court may enter an order of supervision, which is sent to the Department of Revenue so that the driver can be monitored to ensure automobile liability insurance is maintained.
• The court may enter an order suspending your driving privileges for failing to show proof of insurance. This order is sent to the Department of Revenue, and you will be notified of the suspension.

Suspension periods

• 1st suspension = 0 days
• 2nd suspension = 90 days
• 3rd and subsequent suspension = 1 year

Reinstatement requirements

After serving the suspension period, your driving privileges can be reinstated if the Department of Revenue receives the following:

• Proof of insurance
• A reinstatement fee of $20 for the first and second offence, and $400 for the third and subsequent offences

You must maintain liability insurance on your vehicle for three years following the end of the suspension. Failure to provide proof of insurance during this period will result in another suspension for the remainder of the three years, unless you refile proof of insurance and pay a $20 reinstatement fee.

Additional penalties

First offence:

• Your driver's license, registration, and license plates will be suspended until you obtain insurance.
• Four points will be added to your driving record.
• A fine of up to $500.
• A $20 reinstatement fee.

Second offence:

• Your driving privileges will be suspended for 90 days.
• Four points will be added to your driving record.
• A fine of $200 to $500.
• Jail time of up to 15 days.
• A $200 reinstatement fee.

Third and subsequent offences:

• Your driver's license, registration, and license plates will be suspended for one year.
• Four points will be added to your driving record.
• A fine of $200 to $500.
• Jail time of up to 15 days.
• A $400 reinstatement fee.

Reducing or eliminating the fine

If you were insured at the time of the citation but could not show proof, you can appeal to reduce or eliminate the fine by providing proof of insurance to the court clerk before the court date. However, you will still need to pay a court administration fee of $25 to $75.

If your car was not insured and you were ticketed for "no proof of insurance", you can provide proof that you purchased insurance after the traffic stop, and your ticket may be reduced to a lesser charge.

Missouri's insurance law

Missouri law requires all motor vehicle drivers and owners to maintain some type of motor vehicle liability insurance coverage. Missouri motor vehicle owners are required to show proof of insurance when registering a vehicle and renewing their license plates. The minimum level of coverage required by state law is:

• $25,000 per person for bodily injury
• $50,000 per accident for bodily injury
• $25,000 per accident for property damage

The law also requires drivers to have uninsured motorist coverage of $25,000 for bodily injury per person and $50,000 for bodily injury per accident. Non-residents must maintain insurance that conforms to the requirements of the laws of their state.

Drivers in Missouri must keep proof of insurance in their vehicle at all times. If a law enforcement officer asks for proof of insurance and the driver cannot show it, the officer may issue a ticket. The court may then enter an order of supervision, or an order suspending the driver's license.

Missouri does not require any driver to carry gap insurance. However, certain lenders in Missouri may require it if you get a car loan or lease. GAP stands for Guaranteed Asset Protection, and it covers the difference between what you owe on a car loan or lease and the car's worth if your vehicle is totaled.

When to get GAP insurance

Guaranteed Asset Protection (GAP) insurance is an optional form of insurance that covers the difference between the amount you owe on your car and what it's worth if it is stolen or involved in an accident. GAP insurance is worth considering if you have a long finance period, made a small down payment, or purchased a vehicle that depreciates quickly.

In the US, GAP insurance is not mandated by state law, and only a few lenders require it. Missouri doesn't require any driver to carry GAP insurance, but certain lenders in the state may require it if you get a car loan or lease.

If you are considering getting GAP insurance, it is worth noting that it is usually cheaper to purchase from an insurance company than a dealership. GAP insurance is only worth the money if there is a time when you owe more on your car than its current value.

You may want to get GAP insurance if you:

• Made a small down payment
• Have a long finance period
• Purchased a vehicle that depreciates quickly
• Are financing for 60 months or longer
• Leased the vehicle (carrying GAP insurance is generally required for a lease)
• Rolled over negative equity from an old car loan into a new loan

You may be able to skip GAP insurance if:

• You made a down payment of at least 20% on the car when you bought it
• You are paying off the car loan in less than five years
• The vehicle is a make and model that historically holds its value better than average

Frequently asked questions