Does GEICO offer GAP insurance?

GAP insurance is an optional coverage that helps protect you against your car’s depreciating value. Unfortunately, at this time, GEICO does not offer GAP insurance.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent Brad Larsen

UPDATED: Mar 16, 2022

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Things to Know

  • GAP, an acronym for Guaranteed Auto Protection, is optional coverage for if your current vehicle is declared a total loss
  • GAP insurance protects you against your car’s depreciating value
  • In some cases, GAP insurance can significantly reduce the cost of your car’s loan or lease, leaving you free to pursue a new loan or lease for another car

Looking for GAP insurance can be difficult, especially since many car insurance companies do not offer GAP insurance. GAP insurance is optional but incredibly important for emergencies. Like many other optional insurance coverages, GAP insurance is inexpensive and can assist in many worst-case scenarios. GAP insurance can make a difference in getting through a difficult time, similar to roadside assistance or comprehensive coverage.

GEICO is a titan in the car insurance industry, so it may be surprising to learn that GEICO may not have everything you need. GEICO does not offer GAP insurance, but that does not mean there are no other options on the market for you to browse.

Use your ZIP code in our free car insurance comparison tool to find the coverage that works best for you, including optional coverage like GAP insurance and roadside assistance.

What is GAP insurance?

GAP insurance is ideal in the case of a stolen or totaled vehicle. If your car is totaled in an accident, GAP insurance can cover an auto loan or help you pay off any money you may owe on the affected vehicle.

While GAP insurance may sound like full coverage insurance, it is not the same. Full coverage insurance consists of collision, comprehensive, and liability coverage. These three components protect you if there is bodily injury to other drivers, damage to another car, and damage to your vehicle. Comprehensive coverage also assists in any instances of vandalism, theft of parts, or weather-related damage.

However, GAP insurance boosts full coverage on a vehicle by protecting you from covering the costs of your depreciated car. GAP insurance also assists in covering the middle ground between what you still owe on a vehicle and what your insurance company declares the car to be worth.

The money you could have paid out to you from GAP insurance can help you pay for your car’s remaining balance on your car loan or lease without having to shell out thousands of dollars.

GAP insurance can ease the cost of purchasing a new vehicle. You can submit a claim to your car insurance company, and they will send funds for you to use to eliminate or ease the pressure of your previous loan or lease agreement. A GAP insurance refund is usually a certain percentage of your car’s overall value.

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Why do I need GAP insurance?

There are many reasons you may need GAP insurance. GAP insurance can be helpful for those who are financing or leasing a late model vehicle. If you have made less than 25% as a down payment, you may also wish to buy GAP insurance. GAP insurance, in these cases, can help assuage any mishaps from the theft or breakdown of a current vehicle to purchasing a newer car.

Additionally, those who finance notoriously unreliable vehicles or those prone to maintenance issues can benefit from getting GAP insurance because they will not be sure when a car will break down completely.

Those who have high-interest loans in place may also wish to purchase GAP insurance to avoid being liable for their car loan after their car has been totaled, being denied for a new car loan, or subjected to a higher loan rate. Furthermore, in some cases, those who offer car loans may require a purchaser to seek out GAP insurance to cover their assets and protect against depreciation.

What are other optional insurance coverage options?

Many types of optional insurance coverage packages can have significant benefits. Among these insurance coverages are roadside assistance and glass coverage, both offering benefits to consumers who find themselves in an emergency.

For less than $25 annually, you can get roadside assistance coverage that will help you in the case of any roadside emergency. With assistance for towing services, lockout situations, fuel delivery, and tire changes for driving with an appropriate spare, roadside assistance are inexpensive and ideal. GEICO and Progressive offer roadside assistance packages for around $14 annually and will tow your car between 20 and 25 miles or to the nearest repair facility.

Glass coverage will repair or replace a damaged windshield. Most car insurance companies have this coverage included in a policy, but some may offer it free.

GEICO also offers rental car insurance coverage. However, this required insurance coverage is included in a policyholder’s premium. Many other car insurance companies will offer rental car insurance as an optional portion of a driver’s policy. Rental car insurance will protect you as you drive a rental car and provide the same coverage as driving your vehicle.

The Best Companies for GAP Insurance

So, does GEICO offer gap insurance? No, GEICO does not offer GAP insurance, but many other companies do. Some companies will offer GAP insurance for as little as $5 per month or 5% of your overall car insurance premium.

Progressive

Among the most affordable on the market, Progressive’s GAP insurance costs as little as $5 per month. However, Progressive will only pay up to 25% of your car’s overall value as your GAP insurance refund. This amount may not be enough to pay off your loan or lease in total, but it may ease the stress.

Esurance

As with Progressive, Esurance will pay around 25% of your car’s total value in a GAP insurance refund. GAP insurance costs with Esurance depend on several factors. However, most GAP insurance coverages range from $5 to $15 per month. Since Esurance will pay out around 25% of a car’s total value, it may be one of the cheapest GAP insurance providers on the market, like Progressive.

Nationwide

While Nationwide is a touch more stringent than other insurance companies for their GAP insurance, it is still an inexpensive coverage to acquire. Nationwide requires all cars to be no older than six years to be eligible for GAP insurance. Additionally, GAP insurance costs with Nationwide vary depending on several factors, including primarily your car’s overall value. However, Nationwide offers policy discounts for many drivers who qualify.

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GAP Insurance Is Available With Several Car Insurance Companies

While GEICO auto insurance does not provide GAP coverage, many other companies offer it to consumers. GAP insurance is integral to ensuring that your car remains profitable upon replacing it. GAP insurance can help reduce or eliminate a loan or lease on a totaled vehicle. This assistance can make acquiring a new car easier.

Now that you know what GAP insurance is, how it is applied, and which companies offer affordable coverage for it, you can decide if this coverage is right for you. GAP insurance has a low yearly cost and can be a vital part of your car insurance policy. The benefits of GAP insurance make it a clear choice for drivers interested in protecting their vehicles.

Insurance premiums will likely stay around the same, even if you get a newer vehicle after a GAP insurance claim. However, some cars can change the amount that insurance coverage costs. Use your ZIP code in our free car insurance comparison tool to see the best estimates on the market for your insurance coverage needs.

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