Does Geico offer gap insurance?
Does Geico offer gap insurance? Geico does not offer gap insurance, but other insurers and standalone companies do offer gap coverage for $20 to $40 a year. If you need gap coverage and you have an auto insurance policy with geico, you have options.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Jun 22, 2023
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 22, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Geico does not offer gap insurance
- You can purchase gap insurance coverage from standalone companies
- Other top auto insurance companies that offer gap insurance besides Geico include Allstate and Progressive
If you loan or lease your vehicle, you might need guaranteed asset protection (gap) insurance as part of your loan agreement. But does Geico offer gap insurance?
Currently, drivers can’t get gap insurance from Geico. However, other insurance companies and standalone companies offer gap coverage. So, if you love your Geico auto insurance, you can add the coverage in other ways.
Keep reading to learn your options if you’re a Geico policyholder. We’ll also discuss what gap insurance means, whether or not you need it, and provide you with recommendations for coverage options.
You Can’t Get Gap Insurance from Geico
Geico is one of the top car insurance companies and typically offers some of the cheapest coverage available. As a result, many drivers prefer Geico for its low rates and many insurance coverages.
Unfortunately, Geico doesn’t offer gap insurance. So you’ll have to find gap coverage elsewhere if you have a Geico auto loan.
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What to Do if You Have Geico and Need Gap Insurance
If you want to keep your Geico auto insurance, consider adding gap coverage through another source. Many companies allow you to buy gap coverage to add to your standard auto insurance.
Buying gap insurance through a dealer or lender may be more expensive upfront. However, it may be cheaper to keep Geico coverage and pay the extra for gap than switch car insurance companies.
You can also switch car insurance companies to find typical coverage plus gap coverage.
Even though you can’t get Geico gap insurance, you can purchase this coverage from many other auto insurance companies. However, you usually must buy collision and comprehensive insurance to qualify for gap coverage. This may also be part of your loan or lease agreement.
Other companies to consider for gap coverage include Allstate, Nationwide, Progressive, and Travelers. However, car insurance rates through these companies may be more expensive.
Keep in mind that you won’t need gap coverage forever. Once your auto loan is less than the vehicle’s value, you can drop gap insurance. So, it may be less expensive in the long run to keep Geico and add gap coverage from another source.
Typically, gap insurance does not cover your deductible, which may be anywhere from $500 to $2,000, depending on your policy details. So be sure you plan for these possible expenses.
How Gap Insurance Works
If you loan or lease a vehicle, gap insurance covers the difference between the remaining principal of your loan and the actual cash value or ACV of your car in the event of a total loss.
Imagine you total your car but still owe $25,000 on your auto loan. However, due to depreciation, let’s say the actual cash value or ACV of that vehicle determined by your insurance company is $20,000.
Without gap insurance, your insurer only pays the ACV of your car, so $20,000. This leaves you responsible for the deficit out of pocket.
This table breaks down how gap coverage comes into play when you need it.
GAP Insurance Example
Details Costs
Remaining auto loan principal $25,000
Actual cash value of vehicle $20,000
Insurance payment without GAP insurance $20,000
Deficit without GAP insurance $5,000
Insurance payment with GAP insurance $25,000
Deficit with GAP insurance $0
So, even though your vehicle is no longer driveable, you are still responsible for paying the remaining $5,000 on your auto loan out of pocket without gap insurance. But if you have gap insurance, it will pay for the remaining deficit, minus any deductibles.
You May Be Required to Have Full Coverage
Gap only covers the “gap” between the ACV of your vehicle and the remaining principal of your loan. A total loss occurs if your car is stolen or totaled in a collision.
Typically, only comprehensive coverage and collision insurance protects you in these scenarios. For this reason, most insurance companies require you to purchase both collision and comprehensive auto insurance to qualify for gap coverage.
The three policy types work in tandem with one another. But collision and comprehensive insurances usually have deductibles associated with them.
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Gap Insurance May Be Worth It
It’s not necessary for every driver. However, according to the Insurance Information Institute (III), people who made less than a 20% downpayment on their vehicles should consider purchasing this coverage.
Similarly, if you lease your vehicle, take out a long-term loan, or take out a loan for a car that depreciates quickly, it’s worthwhile coverage. In some cases, your loan or lease agreement may require gap coverage.
Once you owe less than what your car is worth, it’s typically safe to remove the coverage from your policy.
Gap Insurance Rates
It depends on if you use an insurance company or go through a dealership or bank. The cheapest option is to go through an auto insurance company.
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If added to your auto policy, coverage averages anywhere from $20 to $40 per year. Through a dealership or loan provider, it could cost you as much as $400 to $700.
The Bottom Line: Geico Does Not Have Gap Insurance
Unfortunately, getting gap insurance with Geico is not an option. If you’re a Geico customer who needs gap coverage, consider comparison-shopping and switching insurance companies.
Many other top auto insurance companies sell gap insurance or loan/lease coverage.
Alternatively, you can secure gap insurance at a higher rate through a bank, dealership, or a standalone company. Do the math to determine if it’s cheaper to keep your Geico auto insurance and pay the higher price for gap coverage while you need it.
You usually only need gap insurance until you owe less than your vehicle is worth. Fortunately, you won’t need to carry gap coverage the entire time you own your car.
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Frequently Asked Questions
Does Geico offer gap insurance?
Yes, Geico does offer gap insurance to customers. Gap insurance, also known as Guaranteed Asset Protection insurance, is designed to cover the “gap” between the actual cash value of a vehicle and the amount owed on an auto loan or lease in the event of a total loss.
How does gap insurance work with Geico?
Geico’s gap insurance works by covering the difference between the actual cash value of a vehicle and the outstanding balance on the auto loan or lease. In the event of a total loss due to an accident or theft, gap insurance helps protect you from having to pay out of pocket for the remaining loan or lease balance that your primary auto insurance may not cover.
Can I purchase gap insurance from Geico if I already have an auto insurance policy with them?
Yes, you can purchase gap insurance from Geico even if you already have an auto insurance policy with them. Gap insurance is typically an additional coverage option that can be added to your existing auto insurance policy.
When should I consider purchasing gap insurance?
Gap insurance is particularly beneficial in situations where you have a new car or a car that is subject to a lease or loan. It is recommended to consider purchasing gap insurance if you have a vehicle with a high depreciation rate or if you owe more on your loan or lease than the car’s actual cash value.
How do I purchase gap insurance from Geico?
To purchase gap insurance from Geico, you can typically add it as an endorsement to your existing auto insurance policy. Contact Geico’s customer service or visit their website to inquire about adding gap insurance to your coverage.
Does Geico’s gap insurance cover all types of vehicles?
Geico’s gap insurance coverage is generally available for most types of vehicles, including cars, trucks, motorcycles, and RVs. However, it’s always best to check with Geico directly to confirm the availability and specific terms of gap insurance for your particular vehicle.
Can I purchase gap insurance from Geico if I have financed or leased my vehicle through a different lender?
Yes, you can purchase gap insurance from Geico even if you have financed or leased your vehicle through a different lender. Gap insurance is not limited to the lender or dealership through which you obtained your vehicle financing.
Is gap insurance mandatory or required by law?
Gap insurance is typically not mandatory or required by law. However, it is a recommended coverage option, especially if you have a loan or lease on a vehicle that is subject to depreciation or if you owe more on your loan or lease than the car’s actual cash value.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.