Lilah Butler, Car Insurance Writer
@lilah_c
Yes, AAA offers gap insurance, though availability may vary by regional club. AAA gap insurance generally costs about 5% of your annual premium, and it pays the difference between your totaled car’s actual cash value and your loan or lease balance. It may also cover your collision or comprehensive deductible, up to $1,000.
To be eligible for AAA gap insurance, you must first have a AAA car insurance policy that includes both comprehensive insurance and liability insurance. AAA gap insurance is usually a better investment than purchasing this coverage from a dealership, where the cost is often rolled into your loan/lease and charged interest. Plus, you can cancel AAA gap insurance once your car is worth more than your loan or lease balance.
If you want more information, you can check out WalletHub’s complete guide to gap insurance.
People also ask
How do I know if I have gap insurance?
To find out whether you have gap insurance, check your existing car insurance policy and the terms of your loan or lease. Drivers can get gap insurance through their insurance company as an add-on or separately through their auto lender, so it’s important to look for gap coverage in the list of coverages provided by both.
How To Know If You Have Gap Insurance
1. Check with your car insurance company.
You...
read full answer by WalletHub, Financial CompanyWhy is AAA so cheap?
AAA is so cheap because the company offers a wide variety of discounts that almost anyone can get. A minimum coverage policy from AAA costs an average of $104 per month, and AAA premiums can be made even cheaper by taking advantage of discounts such as paid-in-full discount and safety inspection discount. Plus, AAA rewards customer loyalty with discounts for insuring more than one car and bundling multiple policies, such as home and auto.
Average Monthly...
read full answer by McKayla Girardin, Car Insurance WriterHow long does it take for gap insurance to pay?
Gap insurance takes 5-45 days to pay the policyholder after a claim is filed. For drivers to receive a gap insurance payout, the car first needs to be declared a total loss, and the insurance company needs to accept the claim.
State laws also dictate how long an insurance company has to pay for a claim. For example, insurers in Texas must pay within five days after accepting a claim. Some other states, like...
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