Does Geico offer gap insurance? (2024)
Geico does not offer gap insurance. However, if you need gap insurance with Geico, other insurers offer it for $20 to $40 a year. Gap coverage helps pay the difference between your car's value and loan amount if totaled. Below, we'll explain how to get gap insurance if you have Geico car insurance coverage.
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Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
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UPDATED: Feb 16, 2024
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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: Feb 16, 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.
On This Page
- Geico does not offer gap insurance coverage
- You can purchase gap insurance from standalone companies
- Allstate and Progressive are top companies, besides Geico, that offer gap
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 with your Geico policy, whether or not you need it, and provide you with recommendations for coverage options. Enter your ZIP code above to compare gap insurance quotes as a Geico policyholder.
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.
Read More: Geico Auto Insurance Review
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 coverage, 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.Brandon Frady Licensed Insurance Producer
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.
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.
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 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?
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Gap Insurance Is Worth it for Certain Drivers
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.
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
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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— AutoInsurance.org (@AutoInsurance) March 14, 2023
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
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.
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.
To begin shopping for gap insurance, enter your ZIP code into our free quote comparison tool below.
Frequently Asked Questions
Does Geico offer 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 work with Geico?
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. However, your gap coverage will have to come from another company, since Geico doesn’t offer it.
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.
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.
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 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.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Licensed Insurance Broker
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.