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What insurance companies write GAP insurance?


A

One of our partners, Safeco, sells Auto Loan/Lease Coverage for some customers, with their auto policy. In addition, Esurance sells Loan/Lease GAP coverage. This type of GAP coverage would need to be purchased with Safeco after the fact because it is not currently displayed on our policy purchase page with them.

Our site does display this coverage option for Esurance in most states, along with Customized Parts Coverage.

Another way in which to obtain GAP insurance with us is through the GAP insurance provider listed on our Insurance Products page. With this insurance carrier it is not required that you have auto insurance with us in order to purchase GAP insurance for your motor vehicle.

If you want more information on GAP insurance providers for your state try contacting your state's insurance regulatory body to see if they have a list.

Does Geico offer Gap coverage with their policies?

Geico does not write Gap insurance in every state. If your son already bought a car insurance policy through Geico he should ask his agent if in his state they offer Gap insurance coverage he can purchase.

If your son cannot get Gap insurance through Geico, here at CarInsurance.com we offer a number of different GAP policy options he can check into.

In each state where we are an online car insurance agency we normally are able to offer Loan/Lease GAP coverage along with your auto insurance policy. Those policies are limited to the terms of your policy and must be purchased with physical damage, Collision and Comprehensive coverage, on the policy.

On our site we display either a Gap insurance or Loan/Lease Payoff coverage option for Esurance, Progressive, Hartford, Travelers and Unitrin Direct in most states. Your son can see if any of these meet his needs, however he will be required to purchase his primary auto insurance coverages with them as well to obtain the Gap coverage.

If your son has a 2011 Toyota truck and didn't put much down on it then Gap insurance would be beneficial to him during the first few years of his car loan when he owes more to his lien holder than the value of the truck. If his truck was in a total loss situation full GAP insurance should pay the difference between what is owed and the actual cash value (ACV) amount paid out by the primary insurance company.

Not all car insurance companies offer full Gap insurance coverage. For instance, Progressive does not offer gap coverage, but offers Loan/Lease Payoff coverage. This coverage is slightly different from Gap insurance because a maximum payout of 25 percent of your vehicle's ACV is stipulated in your policy. In some states the following stipulations exist with Loan/Lease Payoff coverages:

  • Your lender must be a financial institution rather than an individual.
  • Your policy must have Comprehensive and Collision for the vehicle.
  • The claim must be covered under your Comprehensive and Collision coverage.
  • Your vehicle must be determined to be a total loss.
  • Loan/Lease Payoff will not pay for past-due amounts or other purchased coverage, such as credit life, accidental death, warranty/repair, etc.

Since GAP and Loan/Lease Payoff coverage differs depending upon the guidelines and policy terms of the provider, your son should read through the coverage details to find out which coverage would be the best for his situation.

CarInsurance.com offers the ability to shop for car insurance online and the ability to purchase your policy directly through our site. You or your son can get started with instant car insurance quotes and if in your state our partners and affiliates offer Gap or Loan/Lease Payoff coverage it should be displayed as part of the quoting process.

What is the difference between your gap insurance versus other companies?

We offer a number of different GAP policy options. In each state where we are an online insurance agency and offer Safeco, Travelers, Progressive, and The Hartford we offer Loan/Lease GAP coverage along with your auto insurance policy. Those policies are limited to the terms of your policy and must be purchased with physical damage on the policy. It depends on a specific insurer's GAP insurance policy rules whether your deductible will be covered or not as part of the coverage. GAP insurance normally only pays the difference between what is owed and what the Physical Damage Insurance Company pays out (the ACV of the vehicle). That being said some GAP policies will pay the deductible while there are some others that do not.

Below are standard terms for a GAP policy, but remember the terms of Loan/Lease GAP coverage will vary depending upon the guidelines of the issuing company:

• GAP insurance is available if there is a leaseholder or lien holder on the vehicle. A lessor or lien holder can only be a financial institution; it cannot be a private individual.

• Provides coverage when a vehicle sustains a total loss.

• Covers the difference between the actual cash value (ACV) of the vehicle at the time of loss (less deductible) and the amount owing on the loan or lease. (Payment will not exceed 25 percent of the actual cash value of the vehicle at the time of loss, so there is a maximum payout in this manner)

• Can be purchased on new and used vehicles at any time during the policy term.

• Collision and Comprehensive coverages required.

• Payment will not include unpaid finance, excess mileage or any other charges or expenses associated with the loan or lease.

In addition to our auto insurance coverage option, we offer Gap insurance. This is a stand alone policy underwritten and sold by: Lee & Mason Financial Services, Inc., Northville NY. It is available in all states except: CT, LA, NE, NH, NM, NY, VA, WA and you can read more about how it works here.

Since GAP policies terms differ depending upon the guidelines and policy terms of the provider you should discuss your questions with a GAP insurance carrier to make sure your needs will be taken care of before purchasing this type of optional auto insurance coverage.


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