Does GEICO offer GAP insurance?

GEICO does not offer GAP insurance, but other insurers and standalone companies do offer GAP coverage. If you need GAP coverage and you have an auto insurance policy with GEICO, you have options.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Jun 17, 2022

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Things to Remember

  • 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 can you get GAP coverage from GEICO?

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.

Can I 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 should you 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 does GAP insurance work?

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
DetailsCosts
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
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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.

Am I 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 protect 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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Is GAP insurance 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.

How much does GAP insurance cost?

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.

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: Does GEICO 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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