GEICO Gap Insurance: Everything You Need to Know

There are a lot of different types of car insurance out there, and it can be difficult to know which ones are necessary and which ones are just a waste of money. One type of insurance that you might be considering is gap insurance, and if you have a GEICO car insurance policy, you may be wondering whether or not they offer this type of coverage. In this article, we’ll give you all the information that you need to know about GEICO gap insurance.

What is Gap Insurance?

Before we dive into GEICO’s specific offerings, let’s first discuss what gap insurance is and why you might need it. Gap insurance is a type of car insurance that covers the difference between what you owe on your car loan and what the car is actually worth. This can be especially helpful if you are in an accident and your car is totaled, as most standard car insurance policies only cover the current value of the vehicle, which may not be enough to pay off the entire loan.

For example, let’s say that you have a car loan for $20,000, but due to depreciation, your car is only worth $15,000. If you get in an accident and your car is totaled, your standard insurance policy will only pay out the $15,000 value of the car, leaving you with $5,000 still owed on the loan. This is where gap insurance comes in – it will cover that $5,000 difference so that you are not left with a large loan balance and no car.

Do You Need Gap Insurance?

Whether or not you need gap insurance depends on several factors, including:

If you are unsure whether or not gap insurance is right for you, it is always a good idea to speak to a trusted insurance agent who can walk you through your options.

Does GEICO Offer Gap Insurance?

Now that you understand what gap insurance is and why you might need it, let’s talk about GEICO’s specific offerings. The short answer is yes, GEICO does offer gap insurance. However, the availability and pricing of this coverage may vary depending on your location and other factors, so it is always best to speak directly with a GEICO representative to get more information.

How to Get GEICO Gap Insurance

If you have a GEICO car insurance policy and are interested in adding gap insurance, there are a few different ways that you can do so:

• Contact GEICO directly to speak to a representative about adding gap insurance to your policy.
• Go online to the GEICO website and add gap insurance through your account, if available in your area.
• Work with an independent insurance agent who can help you navigate your options and find the best coverage for your specific needs.

When adding gap insurance to your policy, keep in mind that this coverage typically comes with an additional monthly fee, so make sure that you factor that into your overall car insurance budget. However, the peace of mind that gap insurance can provide may be well worth the added expense.

FAQs About GEICO Gap Insurance

What does GEICO gap insurance cover?

GEICO gap insurance covers the difference between what you owe on your car loan and what the car is worth if it is totaled in an accident. This can be especially helpful if you have a long loan term or if your car is likely to rapidly depreciate in value.

How much does GEICO gap insurance cost?

The cost of GEICO gap insurance varies depending on several factors, including your location, the value of your car, and your driving history. However, it typically comes with an additional monthly fee.

Is GEICO gap insurance worth it?

Whether or not GEICO gap insurance is worth it depends on your individual situation. If you owe more on your car than it is worth, have a long loan term, or frequently drive in areas with high accident rates, gap insurance can provide added protection and peace of mind.

Can I cancel GEICO gap insurance?

Yes, you can cancel GEICO gap insurance at any time. However, keep in mind that if you cancel this coverage, you may be left with a large loan balance in the event of an accident.

Can I get gap insurance from another provider?

Yes, you can get gap insurance from other providers besides GEICO. However, it is always best to shop around and compare coverage and pricing to find the best fit for your specific needs.

Conclusion

If you have a GEICO car insurance policy and are considering adding gap insurance, we hope that this article has given you all the information that you need to make an informed decision. Remember, gap insurance can be a valuable form of protection if you owe more on your car than it is worth or have a long loan term, but it may not be necessary for everyone. Speak to a trusted insurance agent or contact GEICO directly to learn more about your options for gap insurance coverage.