Does Geico offer gap insurance? (2024)
You may wonder, "Does Geico have gap coverage?" Geico does not offer gap insurance. However, if you need gap insurance with Geico, other insurers sell it for $20-$40/yr. If totaled, it pays the gap between your car's value and loan. We'll explain how to get gap insurance with Geico car insurance coverage.
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Brandon Frady
Licensed Insurance Producer
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Producer
UPDATED: Sep 4, 2024
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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.
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: Sep 4, 2024
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.
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If you’ve financed a new car, you may be wondering, “Does Geico offer loan/lease payoff coverage?” Geico does not offer gap insurance, but other insurance companies and standalone companies offer it for around $20 to $40 annually. This coverage protects drivers with a car loan or lease from a financial loss if their car’s value drops below the loan amount.
We’ll discuss how to add gap insurance on Geico insurance, whether or not you need it, and how to know if you have gap insurance with Geico. While you can’t directly secure gap coverage from Geico, enter your ZIP code above to secure the cheapest Geico gap insurance rate from a third party.
- Geico does not offer gap insurance coverage
- You’ll need to shop for standalone gap insurance from a third party
- Progressive, Allstate, and State Farm are top gap insurance companies
You Can’t Get Gap Insurance From Geico
Geico is one of the best auto insurance companies, offering some of the cheapest coverage available. As a result, you may wonder, “Does Geico have gap coverage?” Unfortunately, Geico doesn’t offer gap insurance, so you’ll have to find gap elsewhere if you have a Geico auto loan.
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.
Read More: Geico Auto Insurance Review
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What to Do if You Have Geico and Need Gap Insurance
Something many drivers wonder is, “Does Geico offer gap coverage?” If you want to keep your Geico auto insurance coverage, you’ll have to find out where to buy gap insurance, since the company doesn’t offer it. 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.Brandon Frady Licensed Insurance Producer
Even though you can’t get Geico gap coverage, 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.
Read More:
- Allstate Auto Insurance Review
- Nationwide Auto Insurance Review
- Progressive Auto Insurance Review
- Travelers Auto Insurance Review
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.
Learn More: Totaled Car Value Calculator
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’re still responsible for paying the remaining $5,000 on your auto loan out of pocket without gap insurance. However, if you have gap insurance, it will pay for the remaining deficit, minus any deductibles.
Does Geico have loan/lease payoff? Unfortunately, if you have Geico, add gap insurance by shopping with third parties since Geico loan payoff coverage doesn’t exist.
You Might Need Geico Full Coverage to Get Gap Insurance
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.
Read More: What is full coverage auto insurance?
But does Geico include gap insurance? If you need gap insurance coverage with Geico, you’ll have to shop with a stand-alone gap insurance company, since gap with Geico doesn’t exist.
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Gap Insurance Is Worth it for Certain Drivers
It’s not necessary for every driver, but according to the Insurance Information Institute (III), people who made less than a 20% down payment on their vehicles may want to add gap insurance to a Geico policy.
However, does Geico provide gap insurance? The answer is no, so you’ll need to look for gap coverage from top providers such as Progressive or State Farm. (Read More: State Farm Auto Insurance Review)
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.
Read More: Auto Insurance for Leased Vehicles
Once you owe less than what your car is worth, it’s typically safe to remove the coverage from your policy.
Gap Insurance Rates
Your gap insurance Geico cost depends on the insurance company, dealership, or bank you use, since you can’t purchase gap insurance through Geico. The cheapest option is to go through an auto insurance company.
Check out the table below to see how much you might pay for coverage for gap insurance from the top providers:
Gap Insurance Rates by Provider
| Insurance Company | Monthly Rates |
|---|---|
| American Family | $4 |
| Auto-Owners | $4 |
| Erie | $5 |
| Farm Bureau | $8 |
| Farmers | $20 |
| Nationwide | $4 |
| Progressive | $3 |
| Shelter | $12 |
| State Auto | $4 |
| The Hartford | $9 |
| Travelers | $3 |
| U.S. Average | $7 |
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.
Getting Gap Insurance as a Geico Policyholder
Many customers wonder, “Does Geico have gap coverage?” Unfortunately, getting gap insurance directly with Geico is not an option. If you’re a Geico customer who needs gap coverage, consider comparison-shopping and switching insurance companies.
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— AutoInsurance.org (@AutoInsurance) March 14, 2023
Several 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.
Though you can’t pair Geico and gap insurance without buying gap elsewhere, enter your ZIP code into our free tool below and compare your Geico auto quote against competitors.
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Frequently Asked Questions
Does Geico have gap insurance?
A top question customers ask is, “Does Geico sell gap insurance?” No, Geico does not offer gap insurance to customers. However, you can get this coverage from other carriers, such as Allstate or Progressive.
How does gap insurance with Geico work?
Gap insurance with Geico works by covering the difference between the actual cash value of a vehicle and the outstanding balance on the auto loan or lease.
Though, you may also wonder, “Can I get gap insurance through Geico?” Unfortunately, your gap coverage will have to come from another company, since you can’t buy gap insurance with Geico.
In the event of a total loss due to an accident or theft, having Geico and loan/lease payoff coverage helps protect you from paying out of pocket for the remaining loan or lease balance that your primary insurance may not cover.
When should I consider purchasing gap insurance?
Gap insurance could benefit drivers with a new car or one subject to a lease or loan. We recommend you consider purchasing gap insurance for a vehicle with a high depreciation rate or if you owe more on your loan or lease than the car’s value.
So, can you get gap insurance through Geico? While you can’t get Geico gap coverage, you can get coverage through a standalone gap company.
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.
What is the most gap insurance will pay?
Your gap insurance provider will pay up to the full amount remaining on your loan balance after your primary insurance pays for the total loss.
Can gap insurance be added later?
Yes, you can usually add a gap insurance policy to your car later on if you haven’t paid off the loan.
Is gap protection worth it?
If you have a long payoff period, a new car, or didn’t put money down, gap insurance is worth considering.
Why would a gap claim be denied?
Gap insurance claims get denied if the car is only damaged, not totaled. You may also get denied for missing premium payments.
Does Allstate offer gap insurance?
Yes, you can get gap insurance coverage through Allstate.
Does Progressive have gap coverage?
Yes, you can get gap insurance coverage with Progressive.
Does gap insurance cover engine failure?
No, gap insurance will only pay for the difference between your car’s value and loan amount if it gets totaled.
Is gap insurance required in NY?
New York auto insurance laws don’t mandate drivers to carry gap insurance. However, your loan or lease agreement may require you to get New York gap insurance.
How much is gap insurance with Geico?
You may wonder where to buy gap insurance with Geico and, “How much is Geico gap insurance?” While you can’t buy gap coverage with Geico directly, you’ll usually pay between $20 to $40 annually.
How does gap insurance for a trade in with Geico work?
If you trade in your vehicle and owe more than its value, the loan deficit gets transferred to your new loan.
Do I need gap insurance on a used car?
Generally, you won’t need gap insurance on a used car, but it depends on various factors, such as the loan amount, depreciation rate, and the down payment amount.
How do I know if I have gap insurance with Geico?
You may also be wondering, “Do I have gap insurance with Geico?” While you can’t buy Geico gap insurance coverage directly, you can always get a policy with a third party. So, contact your gap insurance provider to ensure you have an existing policy.
Why doesn’t Geico offer gap insurance?
Geico may not offer gap coverage so it can focus on other types of auto insurance coverage.
How much does Geico charge to add a driver?
The cost to add a driver to your Geico insurance policy varies, but could range anywhere from $100 to $300 annually.
Can you get auto loans with Geico?
One question many customer ask is, “Does Geico cover gap insurance?” While Geico auto loans don’t exist, the company will offer car insurance coverage to protect your financed vehicle.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Brandon Frady
Licensed Insurance Producer
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Producer
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.