Does GEICO Have Gap Insurance?

When it comes to insuring your car, there are many factors to consider. One of the most important is whether you have gap insurance. If you’re financing or leasing a car, gap insurance can protect you financially if your car is totaled or stolen and the insurance payout doesn’t cover what you owe on the loan. This article will discuss whether GEICO, one of the largest car insurance companies in the United States, offers gap insurance to its customers.

What Is Gap Insurance?

Before we dive into whether GEICO offers gap insurance, let’s first define what gap insurance is. Simply put, gap insurance is a type of car insurance that covers the difference between the value of your car and the amount you owe on your loan or lease. When you buy a new car, the value of the car depreciates quickly, and it’s possible that the amount you owe on your loan or lease will be higher than the value of the car itself. If you get into an accident and your car is totaled, your insurance company will typically only pay out the actual cash value of the car at the time of the accident, which may not be enough to cover what you owe. That’s where gap insurance comes in – it can cover the difference between what you owe and what your insurance company pays out.

Does GEICO Offer Gap Insurance?

Now, let’s answer the question at hand – does GEICO offer gap insurance to its customers? The short answer is yes, GEICO does offer gap insurance, but it’s important to note that the availability of gap insurance may vary depending on the state you live in and the specific policy you have.

GEICO offers two types of gap insurance – lease/loan gap coverage and new car replacement coverage. Lease/loan gap coverage is designed for customers who are financing or leasing their car, while new car replacement coverage is designed for customers who have purchased or leased a brand-new car.

Lease/Loan Gap Coverage

GEICO’s lease/loan gap coverage is designed to cover the difference between what you owe on your car loan or lease and the actual cash value of your car if it’s totaled or stolen. This coverage can be added to your existing GEICO car insurance policy for an additional cost.

It’s important to note that there are some limitations to GEICO’s lease/loan gap coverage. For example, it’s only available for cars that are less than one year old and have less than 15,000 miles on the odometer. Additionally, the coverage may not be available in all states, so you’ll need to check with GEICO to see if it’s available where you live.

New Car Replacement Coverage

GEICO’s new car replacement coverage is designed to cover the cost of replacing a brand-new car that is totaled in an accident. This coverage is only available for cars that are less than one year old and have less than 15,000 miles on the odometer. If your car is totaled in an accident, GEICO will pay to replace it with a brand-new car of the same make and model. This coverage can be added to your existing GEICO car insurance policy for an additional cost.

How Much Does Gap Insurance Cost?

The cost of gap insurance will vary depending on a number of factors, including where you live, the type of car you have, and the level of coverage you need. In general, gap insurance can cost anywhere from a few hundred dollars to over a thousand dollars per year.

With GEICO, the cost of gap insurance will depend on the type of coverage you choose and the specific policy you have. If you’re interested in adding gap insurance to your GEICO policy, the best way to get an accurate quote is to contact GEICO directly.

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Conclusion

If you’re financing or leasing a car, gap insurance can be an important form of protection. GEICO offers two types of gap insurance – lease/loan gap coverage and new car replacement coverage – to its customers. While the availability of gap insurance may vary depending on the state you live in and the specific policy you have, it’s worth considering adding this coverage to your policy for additional peace of mind. If you’re interested in learning more about gap insurance or getting a quote, contact GEICO directly.