Does GEICO offer GAP insurance?

Many consumers are looking for insurance that will take care of everything. Does GEICO offer GAP insurance? It does not. So you'll have to shop for GAP insurance elsewhere. Some insurance companies, dealerships, or finance companies charge at least $20 a year for GAP insurance. However, your GAP insurance rates may vary. Since GEICO doesn't provide GAP insurance, shop around and compare multiple companies to secure the best GAP insurance rates.

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Chris Tepedino is a feature writer that has written extensively about home, life, and car insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and C...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Dec 21, 2021

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The Rundown

  • GEICO doesn’t provide GAP insurance
  • The lowest GAP insurance rate is about $20 a year
  • You can get GAP insurance from a lender or dealership

GEICO is one of the best insurance companies in the United States. It’s ranked among the top 10, and it’s known for its cheap car insurance rates across the country.

But does GEICO offer GAP insurance? Don’t worry — we’re here to answer your questions.

Our guide explains if GEICO provides GAP insurance, where you can get GAP insurance, and how you can secure affordable GEICO car insurance rates.

Once you learn about whether GEICO offers GAP insurance, use our free online quote tool to compare multiple insurance companies near you.

Does GEICO offer GAP insurance?

No, it doesn’t. GEICO is one of the top auto insurance companies that doesn’t provide GAP insurance for its customers.

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How can I make sure my vehicle is covered under GEICO car insurance?

The best way to ensure that your auto insurance policy covers the value of your vehicle is to raise your GEICO full coverage policy limits (also called coverage level).

In some states, the minimum car insurance requirement can be as low as $5,000. Therefore, we recommend coverage limits of $50,000 or more.

But higher coverage levels drive up auto insurance rates. Let’s look at an example of how GEICO car insurance rates increase by coverage level.

  • Minimum coverage level at GEICO ($25,000 PD limit) — $179/month
  • Medium coverage level at GEICO ($50,000 PD limit) — $191/month
  • High coverage level at GEICO ($100,000 PD limit) — $201/month

In order to get coverage for a damaged vehicle, you can add collision auto insurance to your policy.

GEICO doesn’t have GAP insurance, so you should get collision coverage to pay for the vehicle’s value. However, collision insurance won’t cover your car loan balance, so you may want to look for GAP insurance elsewhere.

Who offers GAP insurance?

Since you can’t get GEICO GAP insurance, you’ll need to shop for GAP insurance with another company.

If you’re still making payments on your vehicle, ask your dealership or lender about adding GAP insurance to your monthly payment.

There are also a few insurance companies that provide GAP insurance:

  • Travelers
  • The Hartford
  • Liberty Mutual
  • Nationwide
  • Kemper
  • USAA
  • Progressive
  • Esurance
  • Allstate
  • Progressive
  • State Farm
  • AAA

It may be a good idea to switch companies if GEICO car insurance quotes are too expensive.

If you don’t have an insurance policy, don’t buy GEICO car insurance right away. Compare several companies to see which company is best for your situation.

How does GAP insurance work in car insurance?

Auto insurance companies that provide GAP insurance cover the remaining cost of the vehicle loan after a total loss accident.

But you’ll need full coverage car insurance to get coverage for a car regardless of fault.

If another driver is at fault, the at-fault driver is responsible for damages to your vehicle as well as your bodily injuries.

The at-fault driver’s liability coverage won’t cover the loan. However, your GAP insurance can pay for the remaining cost of the loan regardless of your vehicle’s MSRP or fair market value.

For instance, let’s say you have a 2019 Honda Accord LX that’s valued at $26,332. When you bought the car, your loan was worth $30,000.

After a total loss accident, the auto insurance company agrees to pay the $26,332. GAP insurance covers the $3,668 that’s remaining.

How much is GAP insurance?

We’ve seen GAP insurance as low as $20 per year. Some insurance companies, dealerships, and lenders charge up to $1,000 a year.

Although affordable GEICO car insurance is tempting, you may be better off with a company that provides what you need.

Shop around to find the best deal on GAP insurance before you commit to a policy.

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Why do you need GAP insurance?

Drivers who made a small deposit on a car loan should get GAP insurance. It’s a great way to protect yourself from expensive out-of-pocket expenses if you get into a total loss accident.

GAP insurance is also helpful if you lease the vehicle. It’s essential to add GAP insurance to avoid sudden and unnecessary costs.

How do I file a GAP insurance claim?

Treat a GAP insurance claim like any other insurance claim. Report an accident or any other incident to your car insurance company immediately.

Make sure you take pictures of the damage and get a copy of the police report.

GAP insurance policies with stand-alone companies require notification, too. The sooner you make a claim, the faster your GAP insurance claim will be processed.

Can you get a GAP insurance refund if you sell your car?

Yes, you can. If you paid your GAP insurance in full, you could receive a partial refund after selling your vehicle.

Insurance companies, stand-alone companies, dealerships, and lenders won’t refund you for months where you used GAP insurance.

Is GAP insurance worth adding to my car insurance policy?

Yes, it is. GAP insurance is one of the best investments to protect your finances from sudden expensive costs.

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The Bottom Line

Many factors determine whether affordable GEICO car insurance is available to you. Unfortunately, GEICO customers can’t purchase GAP insurance.

But several other car insurance companies provide GAP insurance.

If you’re getting close to your renewal date, start thinking about switching to an auto insurance company that provides your basic coverage needs in addition to GAP insurance.

Now that you know that GEICO doesn’t offer GAP insurance, you can start shopping with multiple insurance companies using our free online quote tool below.

Frequently Asked Questions: Does GEICO offer GAP insurance?

Do you want to know more about GEICO auto insurance? Check out these answers to frequently asked questions to learn more.

#1 – How much is GEICO car insurance?

On average, GEICO auto insurance is $179 a month, but rates vary.

#2 – How old is GEICO?

GEICO is about 85 years old.

#3 – How much money did GEICO make in 2020?

GEICO earned $1.5 billion in 2020.

#4 – What’s GEICO’s market share?

GEICO’s market share is 13%, and it’s currently second in the auto insurance industry.

#5 – What’s GEICO’s A.M. Best rating?

GEICO’s financial strength rating at A.M. Best is A++. This means GEICO has superior financial strength ratings and effectively pays out claims to customers.

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