WalletHub, Financial Company
@WalletHub
No, Erie does not offer gap insurance, which is a type of coverage that pays the difference between a totaled car’s value and the policyholder’s loan or lease value. The company does offer new car replacement, though, which will pay off the policyholder’s lease balance if a leased car is totaled. Erie's new-car replacement add-on will also help customers who don't have a lease purchase a new vehicle.
You have several options if you’re a current Erie customer, don't have a lease, and are looking for gap insurance. You could switch insurers and purchase a policy from a company that does offer gap insurance (or loan/lease payoff coverage, which is similar), like Nationwide or Progressive. You could also maintain your policy with Erie and purchase gap insurance from a dealership or a stand-alone company. However, it’s worth noting that dealership gap insurance is often the most expensive option, since it’s usually rolled into your loan and charged interest.
For more information, check out WalletHub’s complete guide to gap insurance.
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