Full Question: Which insurance companies offer full Gap Insurance? I am currently insured with Progressive and they only offer partial Gap Insurance which only covers 25% of the cash value. I need to find an insurance company that offers full Gap Insurance. Any suggestions?
We offer a number of different GAP policy options. In each state where we are an online insurance agency and offer Esurance, 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 it will be "full" gap insurance or as with your Progressive payment will not exceed 25 percent of the actual cash value of the vehicle at the time of loss. Insurance companies' terms do vary so there is a maximum payout in this manner with some carriers such as Progressive.
Progressive in fact does not offer gap coverage, but offers Loan/Lease Payoff coverage to customers, which 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 these stipulations exist with most Loan/Lease Payoff coverages, including the following:
- 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.
Full GAP insurance should pay the difference between what is owed and what the Physical Damage Insurance Company pays out (the ACV of the vehicle). Though there will also be restrictions to a full Gap policy which typically include:
- Maximum Limit of Loss: $50,000
- The claim settlement may not cover the entire Gap due, when your loan's Original Amount Financed exceeds 120% of MSRP (new vehicle) or NADA Retail Value (used vehicles), plus 30% of Value allowable for Additional Financed Items like Credit Life or Service Contracts. The claim settlement does not cover late charges or other penalties due to your lender.
- Your loan amount financed must be less than or equal to $100,000.
- Your loan term must not be greater than 84 months.
- The loan must not have a balloon payment due at the end of the term.
- The maximum APR is 12.5%
Safeco offers Loan and Lease Coverage for paying the difference between the unpaid amount due on the loan or lease and the actual cash value of the vehicle. They also offer New Vehicle Replacement Coverage for paying the full purchase price for your brand new vehicle for the first year of ownership in the event of a total loss.
On our site we display either a Gap insurance or loan/lease payoff coverage option for Esurance, Progressive, Hartford, Travelers, Safeco, and Unitrin Direct in most states, along with Customized Parts Coverage.So you can see if any of these meet your needs however they require you to purchase your primary auto insurance coverages with them as well.
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. It may be able to fulfill your needs if you just want a separate Gap policy. You will need to read through the terms of their policy, restrictions, etc to make sure they are the type of "full" Gap insurance that you need.
Since GAP policies terms differ depending upon the guidelines and policy terms of the provider you should discuss your questions with this or any other GAP insurance carrier to make sure your needs will be taken care of before purchasing this type of optional auto insurance coverage.
If you want more information on the GAP insurance providers for your state try contacting your state's insurance regulatory body to see if they have a list.