Lilah Butler, Car Insurance Writer
@lilah_c
Yes, Erie offers gap insurance and calls it Auto Security. Erie’s Auto Security coverage will pay off the difference between a leased or financed car’s actual cash value and the remaining balance owed if the vehicle is totaled. Auto Security also includes new car replacement for cars that are less than two years old.
Key Things to Know About Erie’s Auto Security Coverage
- You can add Auto Security to your Erie policy at any time prior to a loss for an additional monthly fee.
- Policyholders must purchase comprehensive and collision coverage to be eligible for Auto Security.
- If your vehicle is not leased or financed, and it gets totaled within the first two years of ownership, Erie will reimburse you the cost to replace your vehicle with the newest comparable model year, minus any deductible.
- If your vehicle is leased or financed, Erie will pay the difference between your vehicle’s cash value and your remaining loan/lease balance, instead of paying to replace the car.
If you don’t want to purchase Auto Security from Erie to obtain gap protection, you could maintain your policy with Erie and purchase gap insurance from a dealership or a stand-alone company. However, dealership gap insurance is often the most expensive option, since the cost is usually added to your loan balance and charged interest.
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 Erie so cheap?
Erie is cheap for drivers who have full coverage policies. Drivers can also save even more with Erie by taking advantage of discounts for things like having multiple policies from Erie or for having a vehicle equipped with safety features. Erie is not one of the cheapest car insurance companies overall, though, and young drivers specifically may find cheaper rates elsewhere.
Average Rates for Erie Car Insurance vs. Top Competitors
| ... | Minimum Coverage | Full Coverage |
How long does it take for gap insurance to pay?
Gap insurance usually takes four to six weeks to pay the policyholder after a claim is filed. For drivers to receive a gap insurance payout, the car must be declared a total loss first, and the insurance company needs to accept the claim.
Insurance companies will generally declare a car a total loss within 30 days of the initial claim being filed. However, more complicated situations take longer to settle.
Factors That Affect...
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